In a provider-sponsored organization (PSO)

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In a provider-sponsored organization (PSO), Medicare pays the health plan a monthly fee for each recipient. This is known as capitation and is based on the number of Medicare beneficiaries enrolled in the plan. The PSO assumes financial risk for providing healthcare services to its members, including expenses that Medicare would normally cover. The PSO is responsible for coordinating and managing the healthcare of its members, and can choose to cover additional services not covered by Medicare.

In a Provider-Sponsored Organization (PSO)