Due to skyrocketing healthcare costs in the U.S., several strategies, including capitation, have been utilized to reduce overall cost. Capitation has helped to contain costs by placing a limit on the amount of reimbursement that is offered to the provider for specific types of patients and care. In order for physicians to improve their profitability under capitation, their practices must become more cost efficient. The purpose of this research was to analyze the effects of capitation on the overall reduction of healthcare cost.
Paul III, D., Walker, I., Brunoni, J., Wood, D., Dolinger, T., & Coustasse, A., (2014, November). How effective is capitation at reducing health care costs. Paper presented at the 41st Annual Meeting of the Northeast Business & Economics Association, West Long Branch, New Jersey.