What is a sub-capitation payment?

A sub-capitation payment is indeed characterized by a fixed monthly amount that a provider receives to cover the care of a patient or group of patients. This payment arrangement is often found in managed care organizations and helps facilitate budgeting and financial planning for healthcare providers. By receiving a predetermined amount, providers take on some financial risk, as they are responsible for delivering all necessary care within that budget. This system incentivizes efficiency and cost-effective treatment options, encouraging providers to manage resources wisely while ensuring patient care is not compromised. Such arrangements can help control healthcare costs and streamline payment processes compared to more traditional fee-for-service models, where providers are reimbursed for each individual service rendered.