How can commissioners align provider incentives?

Toolkit chapter 8

This chapter explains why and how capitation, a form of funding, could fund Whole Systems Integrated Care. Capitation incentivises personalised, innovative care that keeps people well at home. Commissioners need to work through important design issues to best incentivise local outcomes and mitigate risks. This chapter focuses on how commissioners can calculate the capitated budget given to a provider network.

  1. Section 1 Chapter 8 - Introduction View section
  2. Section 2 What is capitation and what are its alternatives? View section
  3. Section 3 Why is capitation often used in integrated care systems? View section
  4. Section 4 What are the key design choices for capitation? View section

Reading this section will help you answer

  • What payment model is most suitable for Whole Systems Integrated Care?
  • What are the benefits of the preferred model?
  • What are the risks of the preferred model?
  • What are the challenges that must be overcome to successfully implement the preferred model, from a commissioner and a provider point of view?
  • Should you wish to adopt it, what is the best way to phase in a new payment model?
  • What is the optimal population size on which to base a capitated budget?