ABSTRACT
Introduction Capitated payment is a process whereby the healthcare providers are paid at a fixed rate, typically on a per member per month (PMPM) basis. The given healthcare provider provides whatever services are needed, but the payment remains fixed. From a payer perspective, this form of payment offers the potential of controlling and reducing costs. Using the fee-for-service approach, costs can escalate with a greater volume of services. With capitation, there can be all sorts of services, but the payment will remain fixed.
