Which payment model charges a fixed amount per enrolled patient, regardless of how many services used?

• A. Fee-for-Service.
• B. Bundled Payments.
• C. Capitation.
• D. Accountable Care Organizations.

Answer: (C)

Capitation is a payment model that charges a fixed amount per enrolled patient for a set period, regardless of how many services are used. This arrangement shifts financial risk to the provider: if more care is needed, the provider must cover those costs within the capitation payment; if care needs are low, the provider can keep the difference. This structure incentivizes preventive care, care coordination, and cost efficiency, since the same payment applies whether a patient uses many services or few.

In contrast, fee-for-service pays for each individual service delivered, so more services mean more payment. Bundled payments provide one payment for a defined episode of care, not per patient over time. Accountable Care Organizations are networks that coordinate care and may use various payment approaches, often including caps or shared savings, but the defining feature here is the per-patient, per-period fixed payment.