Certified Medical Administrative Assistants (CMAA) Practice Exam 2025 – Comprehensive All-In-One Guide to Exam Success!

The payment model where providers are paid a fixed rate regardless of the services used is known as capitation. In this model, healthcare providers receive a predetermined amount of money per patient, typically on a monthly basis, to cover a specified range of services. This fixed payment is intended to incentivize providers to offer preventive care and manage resources efficiently, as their payment does not fluctuate based on the number of services delivered or the intensity of care provided to each patient.

Capitation encourages providers to focus on overall patient health outcomes rather than the volume of services rendered, potentially leading to improved preventive care and reduced unnecessary treatments. This model contrasts with fee-for-service, where providers are compensated for each service performed, and other payment structures that rely on variable billing based on individual cases. Overall, capitation is designed to create a more predictable financial environment for healthcare providers while also promoting cost-effectiveness in patient care.