How do capitation payments benefit healthcare providers?

Capitation payments benefit healthcare providers by offering a set payment regardless of the number of services rendered to patients. This payment model allows providers to receive a fixed amount per patient for a defined period, which can stabilize income for healthcare practices. It encourages providers to focus on preventive care and efficient management of patient health, as they are incentivized to keep their patients healthy and reduce unnecessary services. The certainty of a fixed payment helps in financial planning and resource allocation for healthcare providers. This model aligns the interests of both providers and patients, as it promotes cost-effective care while maintaining an ongoing relationship with patients.