Question

Capitation creates an incentive for the provider to render as many services as possible since revenues have already been collected.

Answer 1

true, Capitation creates an incentive for the provider to render as many services as possible since revenues have already been collected.

What is Capitation?

Capitation is a payment system for health care providers. It pays a set amount for each enrolled person assigned to them over a set period of time, regardless of whether that person seeks care or not.

Capitation models are classified into three types: primary care, secondary care, and global capitation.

Managed care organizations use capitation payments to control health-care costs. Capitation payments limit the use of health-care resources by putting physicians financially at risk for services provided to patients.

Fee-for-service (FFS) means that providers bill and are paid for each medical service provided - whether it is a physician visit, a test or intervention, or a hospital day. Capitation means that providers are paid a monthly fee per beneficiary for all or some services (e.g., primary care).

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