Question

discuss the concept Capitation , reference / cite resources if used

Answer 1

QUESTION: Discuss the concept Capitation.

ANSWER:

INTRODUCTION:

• Capitation is one type of payment system in healthcare system in which a hospital or a doctor paid fixed amount of money per patient for a prescribed period of time.
• It is the type of arrangement of payment for health care service provider.
• For a period of time, it pays a definite amount for each enrolled person assigned to them.
• The remuneration amount is based on the health care utilization of a patient.

PROS

• It simplifies bookkeeping.
• It avoid the excessive billing.
• Patients avoid non essential procedure of the test.

CONS

• Health care providers provides services in very less time.
• It motivates to provide very less health care service.

BENEFITS

• The most benefits from capitation system are likely to HMO(Health Maintainance Organization) and IPA(Indivisual Practice Association)
• The decreased cost of bookkeeping is the main benefits for a doctor.
• Reduce the cost of bookkeeping, allow a practice to treat more patients at a lower operating expenses.
• It also benefits to IPA in which it prevents PCP(Primary Care Physician) for providing more care to patients in very costly procedure.
• It also reduce the excessive billing which may or may not be essential.
• The main benefits of capitation system is that , it avoids unnecessary procedures and time consuming procedures.

DRAWBACKS

• For moderate health care , capitation is most cost effective.
• It allow to enroll more number of patients which cause them a longer wait.
• For patient with significant medical issue, Used to increase the financial risk on the physician.

QUALITY CARE

• While creating incentives for prevantative health care, Capitated care make great efforts to control health care costs.
• It Efforts to improve the experience of patient and physician in a health care system.