Capitation in Medical Billing
Capitation is a payment model in which healthcare providers are paid a fixed amount per patient, per month, regardless of how many services are provided.
Capitation in Medical Billing Explained
In a capitated payment model, healthcare providers receive a predetermined fee from the insurance company for each enrolled patient, whether or not the patient seeks care. This model incentivizes providers to focus on preventive care to avoid costly treatments.
For example, a primary care physician receives a fixed monthly payment for each patient enrolled in a managed care plan, regardless of how often the patient visits the doctor.
Discover common acronyms and abbreviations in Medical billing glossary.
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