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Capitation not dead, but its percent of total revenue may decrease in next five years
Health Care Strategic Management
|January 6, 2001
Summary
Capitation payment models remain prevalent in healthcare revenue streams. However, a recent survey indicates a potential slight decrease in their overall contribution over the next five years.
Area of Science:
- Healthcare Economics
- Health Services Research
Background:
- Capitation, a payment model where providers receive a fixed amount per patient, is a widely discussed topic in healthcare.
- Understanding the current and projected use of capitation is crucial for financial planning and policy development in the healthcare sector.
Purpose of the Study:
- To assess the current utilization of capitation as a healthcare payment model.
- To forecast the future trend of capitation's percentage of total healthcare revenue.
Main Methods:
- A survey was conducted by Evergreen Re to gather data on healthcare revenue models.
- Analysis of survey data to determine the prevalence and projected changes in capitation.
Main Results:
- Capitation continues to be extensively utilized in healthcare payment structures.
- A projected, albeit modest, decline in the percentage of total revenue derived from capitation is anticipated within the next five years.
Conclusions:
- Despite a potential future decline, capitation remains a significant component of healthcare provider revenue.
- Healthcare organizations should monitor these trends for strategic financial management.