Under capitation, which statement is true?

Under capitation, which statement is true?

• A. Fixed payment per patient per month regardless of services used
• B. Payment per service rendered
• C. Payment is made only after services are provided
• D. Payment is determined randomly each month

Answer: (A)

Capitation means a prepaid, fixed amount paid to the provider for each enrolled patient, typically on a monthly basis, regardless of how many services that patient uses. This shifts financial risk to the provider, who must manage and deliver care within that fixed budget. Because the payment is fixed upfront, it is not tied to the number of services rendered (not per service), not paid only after services, and not determined randomly each month. Therefore, the statement describing a fixed payment per patient per month regardless of services used is the true one.

Capitation means a prepaid, fixed amount paid to the provider for each enrolled patient, typically on a monthly basis, regardless of how many services that patient uses. This shifts financial risk to the provider, who must manage and deliver care within that fixed budget. Because the payment is fixed upfront, it is not tied to the number of services rendered (not per service), not paid only after services, and not determined randomly each month. Therefore, the statement describing a fixed payment per patient per month regardless of services used is the true one.