What does the term "capitation" mean in healthcare?

In the context of healthcare, "capitation" refers to a payment model where providers receive a fixed amount of money per patient who is enrolled in their care, regardless of the number of services provided during a specific period. This means that healthcare providers are compensated based on the number of patients they manage rather than the quantity of services or treatments given to each patient.

This model is designed to promote preventive care and efficient management of healthcare costs, enabling providers to focus on maintaining the overall health of their patients rather than on the volume of services rendered.

Other options do not accurately capture the essence of the capitation model. For instance, a model based on the number of services provided relates to fee-for-service arrangements, while billing for each treatment separately also emphasizes service quantity rather than a flat payment structure per patient. Lastly, a system that issues a flat fee for emergency services only would not reflect the broader application of capitation across all patient care scenarios.