A capitation model succeeds when the group of HMO patients is large enough that the costs of treating members who need services and those who never see the doctor average out.

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A capitation model involves a fixed payment per patient to a healthcare provider, regardless of the number of services provided. It succeeds when the patient pool is large enough to balance the costs of those who require frequent care with those who require little to no care, thus averaging out the expenses.

A Capitation Model Succeeds When the Group of HMO Patients