The Important Healthcare Model Most People Have Never Heard Of

California’s delegated healthcare model grew out of HMO systems and gave physician groups both financial risk and operational control over patient populations.

By handling utilization review and care coordination, medical groups had stronger incentives for prevention and reinvestment in care.

The article says this made Southern California a hub for innovative delivery systems and an early version of large-scale value-based care.

The model suggests physicians, not insurers, can sometimes drive better coordination, cost control, and population health outcomes.