Capitation refers to a payment method where a fixed amount of money is paid to healthcare providers for each enrolled patient, regardless of the type or number of services they receive. This incentivizes providers to focus on preventive care and cost-effective treatments, as they receive the same amount of money regardless of how much care a patient needs.

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Capitation Refers to

Question 26

Multiple Choice

Capitation refers to

A) payment of a fixed monthly amount to a provider per enrolled patient, regardless of the type or number of services provided.
B) a one-time fee that is paid to providers from insurance companies if the patient enrolls in an HMO.
C) care received from salaried practitioners at a specific facility.
D) administrators and stockholders in a proprietary hospital determining the fee schedule for a given fiscal year.

Correct Answer: