NU Online News Service, Nov. 21, 9:54 a.m. – Capitation is holding its own or growing in many communities, according to a new report from National Health Information, Atlanta.
Capitation is the practice of paying doctors and hospitals a flat fee for each plan member served.
Some health maintenance organizations have moved away from capitation in recent years, in part because problems with analyzing capitation contracts caused severe financial problems in the late 1990s for some hospitals and medical practices. But, today, capitation is doing better than most people realize, National Health says.