Medicare risk contracts--success or failure?

Recent legislation has led to a new popularity in risk contracting. In 1980 a demonstration was begun by the Health Care Financing Administration that provided input for the current capitation program. Administrators from two groups involved in the demonstration program--the Marshfield Clinic and MedCenters Health Plan--offer the unique perspectives of a medical group practice and a health maintenance organization. Significant issues for any group considering entering a Medicare risk based contract are discussed.