monthly payment made to the PCP for each patient they signed up to receive care from them
--usually with HMO
Who has more of the risk with capitation?
HCP- b/c you think $250 a month sounds good if people not sick, but if group of people are really sick, you do a lot of work and still get $250
How do healthcare providers minimize the risk of capitation?
Choose healthy patients over sick ones
Risk adjusted capitation
Higher monthly payment for elderly patients and those w/ chronic illnesses
But you will never know how much you will need
Benefits of capitation
Have to have a PCP
allows for more flexibility at the practice level (virtual visits, email, phone)
British 2 tier system
each person have PCP who receive monthly payment per capita
specialists referrals from PCP
British tiers
health plan
PCP
US capitation system tier
with HMOs
health plan pays payment and capitation rate to IPA (Independent Practice Associations) who then pays all the PCPs and specialists from there (PCP get 0.25 out of $1)