; (II) specifies the covered items and services that will not be provided directly by the Organization, and to arrange for delivery of those items and services through contracts meeting the requirements of regulations; and (III) establishes a governing body that— (aa) consists of representation from each eligible participating provider of such Organization; (bb) includes at least one nephrologist who may be affiliated with a participating provider in the preferred network, at least one nephrologist in the open network, and at least one beneficiary advocate; and (cc) has responsibility for the oversight of the activities of the Organization. (3) Requirement for capital reserves (A) In general The Secretary shall enter into contracts under this section only with Organizations that demonstrate sufficient capital reserves, measured as a percentage of capitated payments and consistent with requirements established by the State in which the Organization operates. (B) Alternative mechanism to demonstrate capacity to bear risk An Organization shall be considered to meet the requirement in subparagraph (A) if the Organization includes at least one eligible participating provider or eligible participating partner that— (i) is licensed as a risk-bearing entity or deemed by a State as able to bear risk