Capitation Agreements

A capitation agreement is a payment arrangement where a healthcare provider receives a fixed, predetermined amount of money per patient for a set period, regardless of how many services that patient uses. This means the provider shares the financial risk of delivering care, incentivizing efficient and preventive treatment. It helps control healthcare costs and encourages providers to focus on keeping patients healthy, rather than billing for each individual service. Essentially, it’s a way to fund healthcare with a steady, predictable payment system that promotes overall health management.