Problem:
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.