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You are familiar with capitation as a payment methodology used in the healthcare industry. Health plans may pay a physician a per member, per month (PMPM) capitation payment for each person in which they are responsible. The CFO has asked you to create a brief summary of information on capitation. Prepare the following information for the CFO's upcoming meeting to explain capitation and its relation to your hospital.

explanation of capitation
challenges of working with capitation
new trends in capitation payments over the last few years

Objective: Identify sources of funding for health care organizations and the role of the grant-writing process.

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The response addresses the queries posted in 578 words with references.

// In the following paper, we will be describe the term capitation, its challenges and the new trends arising in capitation payments that have been noticed in the recent past. To start with; we will explain what the term capitation means: //


The term capitation means a set of dollar payment made to physicians, calculated as per member per month (PMPM) to serve a particular group (List of Health Insurance Definitions, n. d.). The medical facilities are prepaid, whether the enrolled person under the physician avails the healthcare services or not. The payment of physicians are based on average expected health care utilization of patients, other factors are age, race, gender, type of employment and location (Goldstein, 1996).

// After we have understood what capitation actually is, we will now, discuss the challenges confronted during capitation: //

Challenges confronted during Capitation

There are some challenges too, which are confronted in working out capitation. There ...

Solution Summary

The response addresses the queries posted in 578 words with references.