Define "Capitation" and explain how it affects providers' incentives, fees and overall utilization. A- B I T: Capitation a payment method providing a fixed, per capita payment to providers for a specified medical benefits package. Providers are required to treat a well-defined population for a fixed sum of money, paid in advance, without regard to the number or nature of services provided to each person. In this prividers are paid based on number of patient assigned to that particular provider. Capitation useful in case of providers because they don't give payment for all services and payment only based on number of assigned patients. Capitation agreed upon in contract by health insurance company and medical provider fixed pre arranged amount for payments received by physician.
Define "Capitation" and explain how it affects providers' incentives, fees and overall utilization. A- B I T: Capitation a payment method providing a fixed, per capita payment to providers for a specified medical benefits package. Providers are required to treat a well-defined population for a fixed sum of money, paid in advance, without regard to the number or nature of services provided to each person. In this prividers are paid based on number of patient assigned to that particular provider. Capitation useful in case of providers because they don't give payment for all services and payment only based on number of assigned patients. Capitation agreed upon in contract by health insurance company and medical provider fixed pre arranged amount for payments received by physician.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Define "Capitation" and explain how it affects providers' incentives, fees and overall utilization.
В I
Fr -
T:
Capitation a payment method providing a fixed, per capita payment to providers for a specified medical benefits package.
Providers are required to treat a well-defined population for a fixed sum of money, paid in advance, without regard to the number
or nature of services provided to each person. In this prividers are paid based on number of patient assigned to that particular
provider. Capitation useful in case of providers because they don't give payment for all services and payment only based on
number of assigned patients. Capitation agreed upon in contract by health insurance company and medical provider fixed pre
arranged amount for payments received by physician.
II
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