CAPITATION

in healthcare, refers to a method of payment that has been pre-arranged between the healthcare provider/facility and the physician. This applies to patients enrolled in a health management organization (HMO). Thus, doctors and hospital staff are paid a fixed amount for each person served, whether or not he or she seeks treatment.

CAPITATION: "Capitation is the set payment method for health care plans and heath management organizations. "
Cite this page: N., Pam M.S., "CAPITATION," in PsychologyDictionary.org, April 7, 2013, https://psychologydictionary.org/capitation/ (accessed November 11, 2019).
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