A system of payment used by managed care plans in which physicians and hospitals are paid a fixed, per capita amount for each patient enrolled over a stated period of time, regardless of the type and number of services provided, is called

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Capitation is a payment arrangement for health care service providers such as physicians and hospitals. They receive a set amount per patient per unit of time (usually per month) from an insurer or managed care organization, regardless of how many or few services the patient uses. This system is designed to control health care costs by incentivizing providers to offer only necessary services.

A System of Payment Used by Managed Care Plans in Which