What does the term "capitation" refer to in healthcare payment systems?

Capitation refers to a payment arrangement where healthcare providers receive a fixed amount of money per patient enrolled in their care, regardless of the actual number of services rendered. This model incentivizes providers to focus on preventive care and overall patient health management, as they benefit financially from keeping their patient population healthy and minimizing unnecessary services.

In a capitation system, providers are paid a set fee per patient, which encourages them to deliver value-based care and manage healthcare costs effectively. This method stands in contrast to fee-for-service models, where providers are paid for each individual service or procedure performed. The structure of capitation aligns the interests of providers and patients, promoting a holistic approach to health management.

The other concepts outlined in the other choices do not capture the essence of capitation. They describe different payment models focused on service volume or reimbursement processes, which are fundamentally different from the fixed, per-patient payment system that characterizes capitation.