What payment method in managed care involves a fixed prepayment to the physician?

What payment method in managed care involves a fixed prepayment to the physician?

• A. Fee-for-service
• B. Capitation
• C. Direct payment
• D. Salary-based

Answer: (B)

Capitation is a payment method in managed care where a physician or healthcare provider is paid a fixed amount per patient enrolled over a specified period, regardless of how much care the patient may actually use. This model contrasts with fee-for-service, where providers are paid for each individual service provided. The capitation model incentivizes healthcare providers to focus on preventive care and the overall health of their patients, as their payment is not directly tied to the number of services rendered. This approach also helps to control costs for insurers and ensures that funds are allocated efficiently within the healthcare system. Therefore, capitation is specifically designed to create a predictable budgeting system for managed care organizations and encourage cost-effective patient management.

Capitation is a payment method in managed care where a physician or healthcare provider is paid a fixed amount per patient enrolled over a specified period, regardless of how much care the patient may actually use. This model contrasts with fee-for-service, where providers are paid for each individual service provided.

The capitation model incentivizes healthcare providers to focus on preventive care and the overall health of their patients, as their payment is not directly tied to the number of services rendered. This approach also helps to control costs for insurers and ensures that funds are allocated efficiently within the healthcare system. Therefore, capitation is specifically designed to create a predictable budgeting system for managed care organizations and encourage cost-effective patient management.