What is a false statement regarding physician employment and compensation in managed care plans?

The statement asserting that capitation compensation has been increasing over the years is considered false. In managed care models, capitation refers to a payment arrangement where physicians are paid a set amount per patient per period, regardless of the number of services rendered.

Over the years, there has been a trend towards increasing the efficiency of care and managing costs, which has led many payers to explore different compensation models, including value-based care. As a result, there has been a shift in some areas away from traditional capitation payments toward alternative models that focus on quality of care rather than solely on the volume of services provided. This evolution may cause capitation rates to remain stagnant or even decrease in some contexts, rather than consistently increasing.

In juxtaposition, the other statements hold true in the context of managed care plans. Health Maintenance Organizations (HMOs) typically do negotiate lower fees compared to Preferred Provider Organizations (PPOs) due to their more restrictive provider networks and focus on cost control. Also, studies have shown that areas with greater managed care penetration often see an overall lower fee structure, as competition and the negotiation power of managed care organizations can drive down costs. Additionally, a correlation exists where lower fees could potentially support the model of having a higher number