capitation

Meanings

1. 1
   noun

   A system of remuneration for providers of health care, in which providers enroll patients as permanent clients and receive a fixed (and capped) periodic payment for each enrollee (i.e., per capita).

   Capitation started out as a popular method for reimbursing primary care physicians/gatekeepers. Now capitated contracts can be seen in every area of healthcare... ... because of varying volumes, not all specialty care providers should be capitated at the same time. For example, higher volume services (e.g., laboratory, radiology, orthopedics, and cardiology) are usually first to be capitated. Specialists and other medical services that are used infrequently (e.g., neonatologists, neurosurgeons) or "high ticket" specialists (e.g., open heart surgeons) are usually capitated last, if at all. The cost of their services is relatively high and a miscalculation in projected membership or actual utilization can have a large financial impact.

2. 2
   noun

   a tax levied on the basis of a fixed amount per person

3. 3
   noun

   Performing a headcount; the counting of people.

4. 4
   noun

   A head tax.

Learned borrowing from Latin capitātiōnem, from caput (“head”).

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