What are the best practices for implementing a capitation payment model?
Capitation is a payment model in which a healthcare provider receives a fixed amount per patient or member for a specified period of time, regardless of the actual services delivered. This model shifts the financial risk from the payer to the provider, and incentivizes the provider to reduce unnecessary or low-value care, improve efficiency and quality, and focus on prevention and chronic disease management. However, capitation also poses some challenges, such as aligning incentives across the care continuum, ensuring adequate risk adjustment, and measuring and rewarding performance. In this article, we will discuss some of the best practices for implementing a capitation payment model in the context of healthcare management.