What it is:
A capitated contract is a health insurance policy that pays care providers a flat fee for each patient in the plan.
How it works (Example):
For example, a capitated contract issued by Company XYZ might pay Dr. Smith, say, $100 per month for every patient it covers in ABCTown. If Company XYZ has 200 patients there, then Dr. Smith's practice gets $20,000 a month, regardless of whether the patients actually see Dr. Smith that month. Dr. Smith
Why it Matters:
In a capitated contract, the care provider gets a fixed, predictable amount of profit can be very high if patients are well and require little care.every month. Accordingly, the payment is not associated with the frequency of care, so the per patient may be low if patients are sick and require a of care; however, the