An health plan enters into a professional services capitation arrangement whenever the health plan

Contracts with a medical group, clinic, or multispecialty IPA that assumes responsibility for the costs of all physician services related to a patient’s care

Pays individual specialists to provide only radiology services to all plan members

Transfers all financial risk for healthcare services to a provider organization and the provider, in turn, covers virtually all of a patient’s medical expenses

Contracts with a primary care provider to cover primary care services only