Once you posted your initial discussion, respond to TWO (2) of your fellow classmates’ responses. In responding, either constructively expand on their statement or add discuss an additional advantage or disadvantage.  (Try not to repeat the same advantage or disadvantages that others have already posted)

Choose only  ONE (1) of the following options below to discuss. Include question with your response.

1. You just started your new job as a Health Services Manager at a local hospital. The CEO wants your opinion on the advantages and disadvantages of various third-party reimbursement arrangements with respect to revenues and provider incentives. Pick one of the reimbursement arrangements discussed in this week’s reading, explain how it works, and discuss ONE advantage and ONE disadvantage.

2. You are working to develop a business plan for a new business. You are trying to determine the best organizational structure to use.  Of course, the legal structure you pick will depend on the nature of your new company (e.g. who owns it, the number of owners, liability, etc).  Pick one of the legal organizational structures discussed in this week’s reading and state ONE advantage and ONE disadvantage of the structure for your new firm. Be sure to identify the characteristics of your new firm (e.g hospital, physician practice, outpatient center, etc.).

Make sure you are properly citing your source(s) and providing your reference(s) for the information you obtain from another source. Please review the Discussion Expectations and Grading posting if you have any questions regarding answering the discussion question and/or responding to your peers.

SOLUTION

Hello Class

Capitation Reimbursement Arrangement

Capitation is a payment model used in healthcare. Service providers, such as physicians or nurse practitioners, are paid a fixed sum per patient assigned to them over a predetermined period, regardless of how much treatment each patient requires. This strategy differs from fee-for-service models, in which providers are compensated depending on the quantity and type of services they provide (Boachie & Amporfu, 2024). A capitation agreement requires an insurance company or managed care organization to pay a healthcare provider a specific amount for each enrolled patient for a given period, usually a year. This payment covers all the patient’s healthcare services at that time.

For Example:

Patient Capitation Fee

In this case, the healthcare provider receives $2000 per year to care for Betty and Anne, regardless of how often they visit or what treatments they need.

Kindly click the purchase icon above to buy the full solution at $10