Capitation is a payment method where healthcare providers are paid a fixed amount for each patient they enroll, regardless of the services provided. This payment is typically made on a monthly basis. Capitation is common in managed care plans such as HMOs (Health Maintenance Organizations) where providers are incentivized to keep costs low by providing preventive care and managing chronic conditions to avoid expensive hospitalizations or treatments.

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Capitation Refers to

Question 28

Multiple Choice

Capitation refers to

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

Correct Answer: