Most specialists are paid by MCOs using which of the following methods?

Most specialists are compensated by Managed Care Organizations (MCOs) primarily through capitation. Capitation is a payment arrangement where a physician or specialist is paid a set amount for each enrolled patient regardless of whether they seek care during a specific period. This method encourages providers to focus on preventative care and efficiently manage healthcare costs, as their income is not directly tied to the quantity of services provided.

In the context of MCOs, capitation allows for better management of healthcare costs as it promotes the delivery of necessary services without the incentive to over-utilize resources. It aligns the financial interests of the providers with the overall health outcomes of the patients, encouraging a more holistic approach to patient care.

In comparison, the other payment models, such as fee-for-service, salary, and per diems, can lead to different dynamics in provider-patient interactions and financial incentives, where fee-for-service may result in a focus on volume over quality, salary provides a steady income irrespective of patient load, and per diems pay for each day of hospitalization, which doesn’t fit with the management model of MCOs as closely as capitation does.