Capitation Agreement in Medical Billing
A capitation agreement is a contract between a healthcare provider and an insurance company in which the provider agrees to accept a set payment per patient instead of fee-for-service billing.
Capitation Agreement in Medical Billing Explained
In a capitation agreement, the provider agrees to manage a set group of patients for a fixed per-member, per-month payment. This type of agreement helps control healthcare costs by encouraging providers to focus on preventive care and avoid unnecessary treatments.
For example, a healthcare provider enters into a capitation agreement with an insurance company, receiving $50 per month for each patient enrolled under their care.
Explore acronyms and abbreviations in Medical billing glossary.
-
Years in Business
-
Social Signals
