How does capitation work today?

Capitation is a payment model used in healthcare where providers receive a fixed amount per patient for a specified period, regardless of the number of services rendered. This approach incentivizes providers to focus on preventive care and efficient management of resources, as they benefit from keeping patients healthy and reducing unnecessary treatments. Capitation is commonly used in managed care organizations, where the goal is to control costs while improving patient outcomes. However, it also requires effective care coordination and quality monitoring to ensure that patients receive appropriate care.