Welfare and Institutions Code section 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.