A purchaser–provider split has been applied by all three health insurance programs to varying
degrees. The UCS has a partial purchaser–provider split because health care providers also sit
on the board of the NHSO and at the regional level. UCS uses a closed-end budget system with
a capitation contract model for outpatient and promotion/prevention services, and Diagnostic
Related Group (DRG) case-based payments for hospital inpatients, within a defined budget, to
public and private health care providers. UCS also has a fixed fee schedule for some selected
services for which the Board would like to increase service availability, as well as demand.