Salick Breaks New Ground in Deal With Florida HMO

In an attempt to show that comprehensive and cost-effective care can be provided for a large number of cancer patients at a fixed fee, Salick Health Care said Wednesday that it has signed a pioneering agreement with a Florida health maintenance organization.

The Los Angeles-based operator of cancer clinics said the deal with Physicians Corp. of America marks the first time a private health care firm has agreed to provide a full range of services to a large group of patients under “capitated” payment arrangement.

Capitation is a payment method used in managed health care plans such as HMOs, in which a provider is paid a set monthly or annual fee for each member.

Under the agreement, Salick will provide services, including inpatient, outpatient and home care, to Physicians Corp.’s HMO members in south Florida. The agreement is valued at up to $35 million.

The aim of the company’s program is to provide cost-effective care without a reduction in quality, Chairman and Chief Executive Dr. Bernard Salick said.

As part of its contract with Physicians Corp., Salick Health will provide cancer treatment under a set of clinical guidelines aimed at standardizing treatment for patients. It will also provide detailed analysis of the quality of care patients receive.