What Does Capitation Arrangement Mean?

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What does Capitation Arrangement mean? Read on to discover the definition & meaning of the term Capitation Arrangement - to help you better understand the language used in insurance policies.

Capitation Arrangement

Capitation Arrangement

a compensation plan used in connection with some managed care contracts where a physician or other medical provider is paid a flat amount, usually on a monthly basis, for each subscriber who has elected to use that physician or medical provider. Capitated payments are sometimes expressed in terms of a "per member/per month" payment. The capitated provider is generally responsible, under the conditions of the contract, for delivering or arranging for the delivery of all contracted health services required by the covered person.

We hope the you have a better understanding of the meaning of Capitation Arrangement.

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