This is an excerpt from a member-only article. To read the article in its entirety, please login
Examine underlying community trends as one factor in the cost of care
It's no secret that healthcare is a local phenomenon. Physician practice patterns are influenced by the number and type of medical centers, sociodemographic factors, and dominant payer systems in their communities. Actuaries consider these underlying community trends when projecting future healthcare costs in a capitated arrangement, and healthcare providers should do the same when comparing their costs and outcomes to those of their peers.