Which term describes paying a fixed amount per person for health services without regard to the volume of services provided?

Which term describes paying a fixed amount per person for health services without regard to the volume of services provided?

• A. Reimbursement
• B. Capitation
• C. MCOs
• D. HRRP

Answer: (B)

Capitation is a payment arrangement where a fixed amount is paid per person for a defined period to cover a set of health services, regardless of how many services each person uses. This means the provider is paid the same whether a patient has many visits or few, shifting some financial risk to the provider and encouraging cost-conscious, preventive, and coordinated care. That’s why it matches the description: a fixed amount per person per period, irrespective of service volume. Reimbursement is a general term for payments back to providers and can take many forms; MCOs are organizations that manage care; HRRP (Hospital Readmissions Reduction Program) is a policy program aimed at reducing readmissions.

Capitation is a payment arrangement where a fixed amount is paid per person for a defined period to cover a set of health services, regardless of how many services each person uses. This means the provider is paid the same whether a patient has many visits or few, shifting some financial risk to the provider and encouraging cost-conscious, preventive, and coordinated care.

That’s why it matches the description: a fixed amount per person per period, irrespective of service volume. Reimbursement is a general term for payments back to providers and can take many forms; MCOs are organizations that manage care; HRRP (Hospital Readmissions Reduction Program) is a policy program aimed at reducing readmissions.