Capitation

Capitation is a payment structure which is the opposite of traditional fee-for-service reimbursement.  In fee-for-service (FFS), a practice receives a payment for every visit to the practice a covered patient makes.  With capitation, the practice is paid a certain amount per member, per month (PMPM) regardless of how many times the patient is seen at the practice.  If a patient is seen 10 times during a month, the practice receives the same amount as if the patient is not seen at all at the practice during the month.