Partial capitation is a combination of predetermined payments per member and fee-for-service payments. The predetermined (capitated) payments are affixed to routine care while fee-for-service payments are applied to extreme health episodes with costs that are far less predictable.

For providers, partial capitation is a less risky alternative to full capitation and gives them more billing flexibility when it comes to complicated cases. This can be a comfortable “on ramp” for providers as they move toward true value-based care.

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