Capitation

Capitation is a payment model used in healthcare where a provider is paid a fixed amount per patient, typically per month, regardless of how many services that patient uses. This approach encourages providers to focus on preventive care and overall patient wellness, as their income doesn't depend on the volume of services provided. It contrasts with fee-for-service models, where providers are paid for each individual service or treatment. Capitation aims to control healthcare costs and improve patient outcomes by promoting efficient and proactive care.