What term describes paying a healthcare provider a fixed amount for a specific service?

The correct term for paying a healthcare provider a fixed amount for a specific service is capitation. This payment model involves a set fee that covers the costs of care for a patient over a specific time period, regardless of the number of services provided. Capitation emphasizes cost control and encourages providers to focus on preventive care and overall wellness, as they benefit financially from managing patients efficiently rather than from performing a high volume of services.

In contrast, fee-for-service compensates providers based on the individual services rendered, which can lead to higher healthcare costs and an emphasis on quantity over quality. Bundled payments encompass a single payment for all services related to a specific treatment or episode of care but do not involve a fixed amount per patient over time. Value-based care focuses on patient outcomes and quality rather than merely the volume of services; however, it can include various payment structures, not limited to fixed amounts for individual services.