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Captitated pricing

HR Glossary

Captitated pricing

A model used in the relationship between a third-party provider and a business where the company pays the provider (usually health care professionals) a set amount per staff member, whether the services are used or not. This can be risky for the company in that staff may underutilise a service that has been paid for, but can be beneficial in that it incentivises the provider to provide the most cost-efficient treatment.

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