Problem
Traditionally, doctors have been paid on a fee-forservice basis. Now doctors are increasingly paid on a capitated basis (they get paid for treating a patient for a year, regardless of how much treatment is required), though a patient may still have to pay a small fee each visit. In this arrangement, doctors form a group and sign a capitation contract whereby they take turns seeing a given patient. What are the implications of this change in compensation for moral hazards and for risk bearing?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.