Which of the following best defines capitation in healthcare?

Capitation is best defined as a fixed fee per patient regardless of the services rendered. This payment model is designed to provide healthcare providers with a predetermined amount of money for each enrolled patient over a specified period, usually monthly, which encourages them to offer comprehensive care rather than focusing on the number of individual services provided.

In this structure, providers are incentivized to keep patients healthy and manage their care effectively, as they receive the same payment amount regardless of how many times a patient visits or the extent of the care provided. This contrasts with other payment models that may reward higher volumes of services, which might lead to the overutilization of healthcare resources.

This fixed fee arrangement helps to control costs and promotes preventive care, making it a significant approach in managed care systems. Understanding capitation enables healthcare managers to design payment systems that align financial incentives with patient outcomes and overall public health goals.