What type of insurance model does Capitation typically relate to?

Capitation is primarily associated with the Health Maintenance Organization (HMO) model of insurance. In a capitation arrangement, a healthcare provider is paid a set amount for each enrolled member per period of time, regardless of whether the individual seeks care. This model incentivizes providers to focus on preventive care and efficient management of resources, as their revenue is not directly tied to the volume of services provided.

HMOs frequently utilize capitation because they aim to provide comprehensive care while controlling costs, encouraging primary care providers to manage their patients' health effectively. Capitation fits well within the HMO structure, where the emphasis is on maintaining a healthier population and minimizing unnecessary services, contrasting with models like Fee-for-Service, where providers are reimbursed for each individual service rendered.

In summary, the connection between capitation and the Health Maintenance Organization highlights a systemic approach to healthcare reimbursement that encourages preventive care and cost-effective service delivery.