Cal. Welf. & Inst. Code § 14491

The director shall pursue the feasibility of establishing the following as pilot programs: (a) A capitated, risk-assuming contract with one or more regional fiscal intermediaries. (b) A capitated, risk-assuming contract with acute care hospitals within a county or region. (c) A capitated, risk-assuming contract with one or more organizations which provide payment to a specified class or classes of providers. For purposes of this section, “risk-assuming” means the pilot program contractor agrees to assume the risk of utilization of services or costs of services, or both. (Added by Stats. 1977, Ch. 1036.)