Capitated contracting of health providers has created substantial change in
healthcare markets. This article assesses how capitation affects the roles
and relationships of healthcare organizations. In-depth case studies were
conducted of eight major hospital-led integrated health networks/systems an
d two large integrated medical groups. Types of capitated contracts employe
d, contract support capabilities developed, relationships among providers i
n the support services, and lessons learned about capitation were explored.
The experiences of these organizations provide valuable guidance for healt
h executives as they develop or refine capitated contracting strategies.