When an HMO is paid a fixed amount for each patient served without considering the actual number or nature of services provided to each person this is known as?

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1255733

2026-03-26 11:35

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This payment model is known as capitation. Under capitation, healthcare providers receive a predetermined amount per patient, regardless of the actual services rendered. This system incentivizes efficiency and preventative care, as providers receive the same payment regardless of the volume of services used by the patient. However, it can also lead to concerns about the potential under-provision of care.

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