Use of risk adjustment in setting budgets and measuring performance in primary care II: advantages, disadvantages, and practicalities

In the United States, risk adjustment is starting to be used to adjust capitation or other types of payments to healthcare providers such as family practices, multispecialty medical groups, or consortiums of physicians and hospitals (integrated delivery systems).2 For large populations (such as that of a broad geographical area), age, sex, and ecological measures may be adequate for this purpose.