Which phrase best explains capitation in healthcare?

Prepare for the FBLA Healthcare Administration Test with in-depth resources and study materials including flashcards and multiple choice questions. Each question offers hints and explanations to ensure exam readiness.

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.

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