A risk arrangement in a managed care environment in which a health care provider is paid a fixed amount per month for each enrolled member in a health plan regardless of the actual number or nature of services provided to each person. The capitation contract may include a risk sharing arrangement, in which there is an allocation of financial results, both favorable and unfavorable, among the participants to the agreement.
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A method of payment for health services in which a physician or hospital is paid a fixed per capita amount for each person served regardless of the actual number of services provided to each person.