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Capitation not dead, but its percent of total revenue may decrease in next five years.

E Egger

    Health Care Strategic Management
    |January 6, 2001
    PubMed
    Summary
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    Health care strategic management·2001

    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.

    Related Experiment Videos

  • 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.