Capitated is spelled with an IPA transcription of /kæpɪteɪtɪd/. The first syllable is pronounced with a short "a" sound, followed by a "p" sound, and then "i" with a short "e" sound. The "t" is pronounced clearly in the middle of the word, followed by the sound of "ay" and "t" again. This word is most commonly used in healthcare and refers to a payment method in which health providers are paid a set amount per patient per period, rather than on a fee-for-service basis.
Capitated is an adjective that refers to a method of payment or reimbursement in healthcare systems. In a capitated payment system, healthcare providers receive a fixed amount of money per patient per unit of time, such as per month or per year, regardless of the actual services provided. This fixed payment, known as the capitation fee, is agreed upon in advance between the insurance company or payer and the healthcare provider.
Capitated payment models aim to align the financial incentives of the healthcare provider with the goals of reducing costs and improving patient outcomes. By receiving a predetermined amount per patient, healthcare providers are encouraged to deliver efficient and effective care, as they bear the financial risk of excessive or unnecessary services. This can promote preventive care, coordination of care, and cost-effective treatment decisions.
Capitated payment systems are often used in managed care organizations, such as Health Maintenance Organizations (HMOs) or Accountable Care Organizations (ACOs). These organizations contract with healthcare providers to deliver a specified set of services to a defined group of patients for a fixed payment per patient. By adopting capitated payment systems, these organizations aim to incentivize healthcare providers to deliver high-quality and cost-effective care, while also managing the financial risk associated with unpredictable healthcare costs.
In summary, capitated refers to a method of healthcare payment where providers receive a predetermined fee per patient, irrespective of the actual services delivered, in order to promote efficient, cost-effective, and coordinated care.
The word "capitated" is derived from the Latin word "caput", which means "head". In medieval Latin, "caput" was extended into "capitatus", which referred to the act of putting a cap or head on something. Over time, this term evolved further into "capitare", which meant "to tax" or "to assess a tax per head".
In the context of healthcare, the term "capitated" is used to describe a method of payment in which a fixed amount of money is paid per person enrolled in a healthcare plan or system. This usage can be traced back to the idea of taxing or assessing a fee per head.