Government sets minimum levels of solvency and good management. It sets actuarial and risk standards. Since medical records must be confidential, RSF members can't be allowed to review the books and records. Therefore strict audit and bonding requirements must be established for all RSFs. High Quality Care Government sets minimum mandatory level of coverage.
Care is determined by physician and patient, without interference by outside third parties.
There is no capitation, and no unethical incentives to withhold needed treatment. The risk assumed by the RSF is controlled by government setting minimal membership, and solvency levels and requiring bonding of officers, purchase of reinsurance, and use of actuarial consultants and auditors. The RSF is run by the people it covers. They will have to live with any unpleasant policies they put into place. No uncaring government bureaucrats or self-serving profiteers are involved in medical decision making.