The director may contract, on a bid or nonbid basis, with any qualified individual, organization, or entity to provide services to, arrange for or case manage the care of Medi-Cal beneficiaries. At the director’s discretion, the contract may be exclusive or nonexclusive, statewide or on a more limited geographic basis, and include provisions to do the following:
(a) Perform targeted case management of selected services or beneficiary populations where it is expected that case management will reduce program expenditures.
(b) Provide for delivery of services in a manner consistent with managed care principles, techniques, and practices directed at ensuring the most cost-effective and appropriate scope, duration, and level of care.
(c) Provide for alternate methods of payment, including, but not limited to, a prospectively negotiated reimbursement rate, fee-for-service, retainer, capitation, shared savings, volume discounts, lowest bid price, negotiated price, rebates, or other basis.
(d) Secure services directed at designing and implementing fiscal or other incentives for providers to participate in the Medi-Cal program in cost-effective ways.
(e) Encourage group practices with relationships with hospitals having low unit costs.