California Welfare and Institutions Code § 14165.6

Welfare and Institutions Code
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The commission shall direct the planning, development and negotiation of contract services which provide for: (a) The provision of services through a capitation methodology, including, but not limited to, health maintenance organizations, organized county health systems, insurance companies, and independent practice associations. (b) Hospital inpatient or hospital outpatient services. (c) Pilot projects meeting the provisions of Section 14491.5. (d) Health care projects meeting the provisions of Article 2.91 (commencing with Section 14089).

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