Final answer:
A capitation account, when applied to the ledger, is known as a monthly prepayment amount. This is a payment model in the healthcare industry where providers receive a set amount per enrolled person per period, which is not based on the actual services provided.
Step-by-step explanation:
When a capitation account is applied to the ledger in the healthcare industry, it is also known as a monthly prepayment amount. Capitation is a payment arrangement for health care service providers where they receive a set amount per enrolled person assigned to them, per period of time, regardless of whether that person seeks care. This predefined payment is paid by health insurers to medical providers and is typically expressed in terms of a per-member per-month rate (PMPM). It's a financial structure used to manage the cost of healthcare by establishing a fixed monthly payment per patient without considering the actual number or nature of services provided to each patient. This contrasts with other payment models like fee-for-service (FFS) where providers are paid per service rendered, a copayment amount that is a fixed out-of-pocket amount paid by the patient at the time of service, or a monthly premium that is the amount paid, typically monthly, for health insurance coverage.