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Sacramento is test market for health care contracting, payments
Sacramento Business Journal

Watch the Sacramento health care market because it is a perfect Petri dish for new contracting and payment arrangements, says health economist Paul Ginsburg. With four powerful nonprofit health systems – each aligned with physician groups – Sacramento is the most organized market in the state. The strong presence of HMOs, growing dominance of Kaiser Permanente and influence of the California Public Employees’ Retirement System makes Sacramento a good place for innovative approaches like narrow networks and global payments that require health plans, hospitals and doctors to work together, Ginsburg said recently at a Sacramento forum.