Global Capitation

Global capitation is a payment model in healthcare where a provider receives a fixed, predetermined amount of money annually to cover all the medical services for a patient or group of patients, regardless of how many services are actually used. This approach encourages providers to deliver efficient, preventive care, as they are responsible for managing costs within the set budget. It shifts some financial risk from insurers to providers, promoting more coordinated and cost-effective care, while ensuring patients have access to necessary health services without worrying about individual charges.