26 November 2014

What are capitated payments?

Supporting innovation in the NHS with local payment arrangements
Monitor 26 November 2014
  • This document explains how NHS providers and commissioners can use capitated payment arrangements to support local service improvement and reconfiguration as permitted under the Health and Social Care Act 2012.
  • The document describes:
    • what is driving the need for more integrated care
    • the benefits of capitation for patients and local care economies
    • its potential risks and how to mitigate them
    • the steps involved in designing capitated payment for a local integrated care
    • initiative that fits within current payment rules
    • key factors for enabling it to achieve anticipated benefits
    • methods for evaluating its impact. 
  • Capitated payment or capitation means paying a provider or group of providers to cover the majority (or all) of the care provided to a target population, such as patients with multiple long term conditions, across different care settings. The regular payments are calculated as a lump sum per patient.