|
Capitated Network Management Services
The
primary source for revenue for HN1 is through Capitated Network Management Services. Under these payor agreements, HN1 is paid a capitation fee for the
professi onal or both the professional and technical
components of one or more medical specialty(ies). As
part of these agreements, HN1 may use its existing
network of contracted providers, the health plan’s
existing provider network, or some combination of its
provider network and the health plan’s provider
network. HN1 also would usually assume responsibility
for some or all of these operational functions:
Fee-For-Service Network Management Services
Under these arrangements, HN1 is paid an
administrative fee for operating one or more provider
specialty networks on behalf of a health plan. HN1
also provides management oversight and performs the
some or all of the following operational functions:
Under
these arrangements, a bonus or bonus/penalty provision
could be instituted based on whether or not any Part B
(professional) and/or Part A (facility) savings are
achieved by a health plan through HN1’s management of
their specialty network(s).
HN1 would
typically provide these management services to health
plans that 1) have high medical expenses for a certain
specialty but do not want to have claims payments
performed/delegated to an outside party and/or 2) when
a health plan wishes to retain its existing provider
network but seeks assistance from HN1 in order to help
reduce its current medical expense level for a
particular medical specialty.
Provider Network Access & Development
Under
these arrangements, HN1 is paid an administrative or
an access fee for developing a network of providers or
leasing its existing provider network to a health
plan. Under these arrangements, HN1 could also be paid
a bonus for any Part B and/or Part A Savings achieved
or incur a financial penalty should Part B and/or Part
A expenses increase or remain unchanged while under
the management of HN1.
Under a
network services arrangement, Payers often delegate
some or all of the following administrative functions
to HN1:
HN1 would
typically provide these management services to health
plans that have recently entered a new market service
area and do not have an existing provider network
and/or do not have the internal resources to expand
its existing provider network.
|