Question

Which of the following statements about capitation is most correct?

1) Capitation is a fixed amount of money paid per person for healthcare services
2) Capitation is a fee-for-service payment model
3) Capitation is a payment model used only in hospitals
4) Capitation is a payment model used only in primary care settings

Answer 1

Capitation is a payment model where a fixed amount of money is paid per person to healthcare providers, regardless of the services rendered.

Step-by-step explanation:

The most correct statement about capitation is that it is a fixed amount of money paid per person for healthcare services. This payment model is used by health maintenance organizations (HMOs) and differs from a fee-for-service model in that the healthcare provider receives a set fee per enrolled individual regardless of the number of services rendered. Capitation payments encourage providers to focus on preventative care and maintaining the health of their patients, as they receive the same amount no matter how many services are needed. This model can also be combined with fee-for-service for certain treatments, addressing some complexities in provider incentives.