Shih and Nallamothu (2015) asserted that the bundled payments had been implicated as a strategy in combating the ever-rising healthcare costs. The bundled payments aim at providing a fixed payment for every service given during a single care episode. On the other hand, the accountable care organization includes a group of health care providers who voluntarily come together to provide care to Medicare patients (Accountable Care Organizations (ACOs): General Information). The two value-based models of payment have caused a reduction in funding which has significantly had an impact on the Krona's revenue leading to its reduction.
In an attempt to predict the cost of health care in the coming years, several issues must come into consideration. One of the factors is the reduced cases of age-specific rates of chronic illnesses and disabilities. There is also a significant question as to whether the advances in the area of biotechnology will increase or reduce the treatment costs. Another primary reason is the unprecedented increase in the number of the elderly (Forecasting the Cost of U.S. Healthcare, 2009) . Stakeholders are also evaluating the population increase and the factors responsible for the growth. Therefore, when these issues are taken into consideration, the chances are high that it will become possible to predict next year's budget forecasting.
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Just like any other health payment system, capitation has its advantages, disadvantages, and risks. It is important to note that in a capitation system, the providers receive payments per members instead of paying for services. Managing capitation is relatively easier given that it keeps track of the enrolled members. Also, it minimizes unnecessary interventions because the main aim of the physicians is to keep the costs down. Some of the disadvantages and risks include the fact that the patients' choices are significantly restricted (Kinsey, 2018). Also, it increases the risk of physicians taking in more patients that they can realistically handle. There is also a potential that physicians might become stingy with care by failing to order the much-required interventions to save costs.
References
Accountable Care Organizations (ACOs): General Information, Center for Medicare and Medicaid Services. Retrieved from : https://innovation.cms.gov/initiatives/aco/
Forecasting the Cost of U.S. Healthcare. (2009). From: http://www.aei.org/publication/forecasting-the-cost-of-u-s-healthcare/
Kinsey A. (2018). “Advantages & Disadvantages of Capitation Payments” BizFluent https://bizfluent.com/info-12185015-advantages-disadvantages-capitation-payments.html
Shih, T., Chen, L. M., & Nallamothu, B. K. (2015). Will bundled payments change health care? Examining the evidence thus far in cardiovascular care. Circulation, 131(24), 2151-2158.
