CAPITATION Meaning and
Definition
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Capitation is a term used in economics and healthcare to refer to a method of payment or funding whereby a fixed amount of money is paid per person, regardless of the actual services rendered or the cost of those services. It is a form of prepaid funding that sets a predetermined amount of money per individual regardless of their level of usage or need.
In the context of healthcare, capitation is often used by insurance companies or healthcare providers as an alternative to fee-for-service payment models. Under capitation, a fixed fee is paid to healthcare providers on a per-patient basis, typically on a monthly or annual basis. This payment is meant to cover all necessary medical services that a patient may require during a defined period, such as doctor visits, diagnostic tests, medications, and preventive care.
By employing capitation, healthcare providers and insurance companies aim to control costs and reduce unnecessary or excessive medical services. It provides an incentive for providers to focus on preventive care and cost-effective treatments, as they are responsible for managing the healthcare needs of a set number of patients within a fixed budget.
However, capitation can also lead to potential drawbacks, such as under-provision of care, cherry-picking patients, or inadequate access to specialized treatments. It requires careful oversight and monitoring to ensure that patients receive appropriate care and that providers are not incentivized to skimp on necessary services to maintain profitability.
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So much per head or individual; a poll-tax.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for CAPITATION
Etymology of CAPITATION
The word "capitation" has its roots in the Latin word "caput", meaning "head". The term "capitātiō" was derived from this Latin word, which referred to a tax levied per head or individual. Over time, the term made its way into Old French as "capitatioun", and eventually into Middle English as "capitacioun" before becoming "capitation" in Modern English. The term still retains its original meaning of a tax or payment levied on each person.
Similar spelling words for CAPITATION
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