Withhold Arrangement. Any payment mechanism under which a portion of a Capitation payment is withheld from the Primary Contractor and a portion of or all of the withheld amount will be paid to the Primary Contractor for meeting targets specified in the Agreement. The targets for a withhold arrangement are distinct from general operational requirements under the Agreement. Arrangements that withhold a portion of a Capitation payment for noncompliance with general operational requirements are a penalty and not a withhold arrangement.
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Sources: Healthchoices Behavioral Health Program Standards and Requirements, Healthchoices Behavioral Health Program Standards and Requirements