Okuzeka
Healthcare Management vocabulary · Health Insurance and Reimbursement

Capitation

Meaning in healthcare management, with examples

/ˌkæpɪˈteɪʃən/nounAdvanced term

In healthcare management, capitation means: A payment method in which a provider receives a fixed amount for each registered person over a period, whether or not that person uses any care.

In Turkish: kişi başı ödeme, kapitasyon

How it is used

Common in primary care and in managed care plans. It gives providers a stable income and a reason to keep people healthy, but critics warn that it may encourage doing too little. US contracts often state the amount 'per member per month'.

Example sentences

  1. Family doctors are paid mainly by capitation, based on the number of patients on their list.

  2. Under capitation, the clinic carries the financial risk if patients need more care than expected.

Common collocations

  • capitation payment
  • capitation rate
  • capitation model
  • per member per month
  • fee-for-serviceA payment method in which providers are paid separately for each visit, test or procedure they carry out.
  • primary careThe first point of contact with the health system, such as family doctors and local health centres, which deals with common problems, prevention and referrals.
  • value-based careA way of organising and paying for healthcare that rewards providers for the health results they achieve for patients relative to cost, not for the number of services.
  • payerAn organisation that pays for patients' healthcare, such as a government health fund, a social security institution or an insurance company.

More terms: Health Insurance and Reimbursement

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not medical advice.