Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance

Study: Capitation Still Alive

Your article was successfully shared with the contacts you provided.

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.

Hospitals are collecting 3% more capitation revenue this year than they did last year, and multispecialty physician groups are collecting 9.4% more, the firm says.

Capitation rates per patient served have increased 6% for primary care medical practices and 9.9% for all health care providers, and 90% of the providers surveyed report that they break even or make a profit on capitation business, National Health says.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.