What is a capitation?
Capitation is a financial arrangement in which a fixed payment is made to a healthcare provider for each patient under their care, regardless of the number of services provided. This concept is rooted in the idea of sharing risk and responsibility for the healthcare costs of a defined population. By shifting the focus from volume-based payments to a per-patient payment, capitation aims to encourage healthcare providers to deliver efficient and effective care, while also ensuring that patients receive comprehensive coverage. In this article, we will explore the origins, benefits, and challenges of capitation in the healthcare industry.
