A client has a managed care program that is organized on the basis of capitation. Client providers are paid the same amount earned is a characteristic of this client's health care
Capitation is a set sum of money per patient and per hour that is paid in advance to the doctor to cover the cost of providing medical care. The payment that a medical provider or health insurance company agrees to make under a capitated agreement is referred to as a capitation payment.
For each patient enrolled in a health insurance plan, the healthcare provider receives a fixed payment in US dollars each month. In contract negotiations with payers, the doctor has more negotiating power. Concerns about capitation include the possibility that it would: Incentivize enrolling many people, which might lead to greater wait times and shorter times for individual patient visits.
