Capitated reimbursement

Capitated reimbursement is a health management plan which pays health care service providers a set amount of money to provide health care based on the number of people covered in the plan. This is a recent effort of insurance companies and large corporations to reduce health care costs. Providers who work under these plans focus on preventative health care as it is far less expensive to keep a person from becoming ill than it is to treat them once they are ill.

[http://www.edmondsgroup.com/understa.htm Understanding Capitated Delivery Systems]