// definition
Capitation
Fixed payment per patient and period
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Short definition
A payment method in which a physician or physician group receives a set amount per patient and period, usually a month, for a defined package of services and administrative costs, regardless of the number of services delivered. The covered services and contractual protections determine the provider’s cost exposure. The payment does not measure quality of care.
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Primary sources
- eCFR, 42 CFR 422.208(a)Capitation definition: payment per patient and period for a package of services, regardless of the number of services delivered.
- Humana, 2025 Form 10-KCapitation and Risk Factors: contract scope and levels of financial risk; company disclosure.