California Welfare and Institutions Code § 14491

Welfare and Institutions Code
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The director shall pursue the feasibility of establishing the following as pilot programs: (a) A capitated, risk-assuming contract with one or more regional fiscal intermediaries. (b) A capitated, risk-assuming contract with acute care hospitals within a county or region. (c) A capitated, risk-assuming contract with one or more organizations which provide payment to a specified class or classes of providers. For purposes of this section, “risk-assuming” means the pilot program contractor agrees to assume the risk of utilization of services or costs of services, or both.

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