Growing awareness of the failings of the prevailing fee-for-service payment system has led to a reemergence of interest in payment models that build on the capitation approach, generally referred to as global payment. Based on interviews with physicians and industry leaders, this Commonwealth Fund report found that many of the problems that plagued capitation payment programs in the 1980s and 90s have been resolved. Those interviewed believe that cost reductions of 20 to 30 percent—as well as improvements in the quality of care—are achievable under well-constructed global payment models.