FBLA Healthcare Administration Practice Test

Capitation in healthcare refers to a payment system where a provider is reimbursed a fixed amount per patient, regardless of the number of services provided during a specific period. This model incentivizes providers to focus on preventive care and efficient management of resources, as they receive a set fee for each enrolled patient, thereby shifting the financial risk from the insurer to the healthcare provider. The fixed payment is typically per member per month and can help control costs while encouraging providers to manage patient care more proactively.