Capitation Payments

Capitation payments are a method of paying healthcare providers a set amount of money per patient they manage, regardless of how many services that patient uses. Think of it like a subscription fee: the provider receives a consistent fee each period for each enrolled patient, encouraging efficient and preventive care. This model shifts some financial risk to providers, as they must manage costs carefully, but it also incentivizes maintaining good health and preventing serious issues to avoid extra expenses. Capitation aims to promote cost-effective, proactive healthcare while ensuring patients have access to necessary services.