capitation model

The **capitation model** is a payment arrangement used in healthcare where providers are paid a fixed amount per patient for a specified period, regardless of how many services the patient uses. This model incentivizes efficient care and cost control by encouraging providers to focus on preventive measures and effective management of chronic conditions, rather than the volume of services rendered. It contrasts with fee-for-service models and is commonly used in managed care plans. Use this tag for posts discussing healthcare financing, insurance models, managed care strategies, and related topics.