Capitation,
Is if the Doctor has 500 patients and sees only 400 0f those patients with a period of a time he still gets paid for the 500 patients. In the aspect of the patient it could be looked at as a way of even if he doesn’t make the appointment the provider still gets paid by the insurance plan. When the capitation payment is used the financial risk for care of the patient is transferred to the medical system, this payment method only works if the physician and the hospital are integrated either by a contract or an organization with a population that is sufficient for medical serves that are utilized. The population has to have a reasonable degree of certainty that must be met for this type of health care to work. With thios one the quality of care does not provide the patients with much quality of care There are 6 steps to a methodology for putting together and establishing the rate of the capitation payments are;
Determine the delivery system cost base,
Develop use rates,
Calculate capitation rates,
Adjust the rates, for when the impact of the incremental volume,
Talking about the upcoming contract to avoid any mistaken part of the contract that could happen,
Keep watch on how the performance of the cycle goes.
Fee-for-service is where the patient or the insurance that they have pays for all services separately as in the appointments, tests, or