Question

Which of the following statements about capitation is most correct?

	a.	Capitation creates a delay between providing services and receiving payment.
	b.	The capitation payment amount to providers varies significantly from month to month and hence is difficult to predict.
	c.	Capitation encourages providers to focus on prevention and wellness.
	d.	Capitation places a greater administrative burden on providers than does fee-for-service payment.
	e.	Capitation uses a per diagnosis methodology to set hospital payment rates.

Answer 1

Option.C) Capitation encourages providers to focus on prevention and wellness.

The above statement is most correct with regard to capitation.