Capitation ____
a. Keeps the financial risk away from the hospital
b. Is a financial incentive plan for Magnet™ institutions
c. Provides a fixed dollar payment, regardless of service provided
d. Stops payment to the hospital after 30 days of hospitalization
C
Capitation is a "fixed dollar amount that a health plan or provider is paid to furnish specific kinds of medical services that an insured person needs, regardless of the volume of care needed" (Gri-maldi, 1996, p. 5). Capitation is a mechanism for paying health care providers that transfers fi-nancial risk to the provider and away from the health plan or covered individual. In the primary care setting, flat rates are paid for providing health services to a defined population over a set period. Providers receive a set amount per month regardless of the amount of care that is deli-vered.
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