Timby's Introductory Medical-Surgical Nursing Thirteenth, North American Edition - Concepts and Trends in Health Care Related

Review Timby's Introductory Medical-Surgical Nursing Thirteenth, North American Edition - Concepts and Trends in Health Care related questions and content

A nurse is working for a health care provider who participates in a health maintenance organization (HMO) and will be assisting with the billing. What type of information regarding capitation does the nurse need to understand?

  • A. Fees are not based on the number of services provided but rather are projected to the number of participants and expected services.
  • B. Fees are based on the number of services billed for by the primary care provider.
  • C. The HMO makes money based on the degree of illness and number of diagnostic tests that are performed.
  • D. The fees that are charged are different even with the same diagnosis.
Correct Answer: A

Rationale: With an HMO, fees are not based on the number of services provided but rather are projected to the number of participants and expected services. This type of financial management is referred to as capitation, which refers to the actual head or person count. Fees are not based on the number of services a provider bills for rather are based on capitation. The HMO makes money by keeping people healthy and out of the hospital and does not base fees on the client's degree of illness or the number of diagnostic tests done. The fees are the same regardless of the actual service or frequency of care provided.