What aspect of healthcare financing does capitation typically address?

Capitation primarily addresses healthcare financing through monthly payments made to providers based on patient enrollment. This payment model shifts the financial risk from payers to providers, as the provider receives a predetermined amount for each enrolled patient, regardless of the number of services provided or the actual healthcare consumption by patients. This encourages efficient resource utilization, as providers are motivated to maintain the health of their patient population to avoid unnecessary procedures and costs, ultimately fostering preventive care and cost-effective management of healthcare services.

In contrast, daily hospital room rates pertain to billing specifically for inpatient stays, while fees charged for every service provided emphasize a more traditional fee-for-service model that can lead to higher overall healthcare costs if not well-managed. Revenue from government healthcare grants does not fall under capitation but rather pertains to funding sources for healthcare programs. Thus, the aspect addressed by capitation is specifically the structured monthly payments linked to patient enrollment.