What is global capitation and what risk does it transfer to providers?

• A. Global capitation pays per service without cap.
• B. Global capitation pays a lump sum to cover most or all care for a patient population; providers assume financial risk for costs that exceed the capitation.
• C. Global capitation covers only primary care.
• D. Global capitation transfers risk to patients.

Answer: (B)

Global capitation fixes a lump-sum payment per enrolled patient (for a defined period) to cover most or all of that patient population’s care. Because the payment is not tied to each individual service, providers must manage all expected costs within that budget. If actual costs exceed the capitation amount, the providers absorb the excess; if costs are lower, they keep the difference (depending on the contract). This arrangement places financial risk squarely on the providers, incentivizing efficient care and cost control.

The other options don’t fit: paying per service describes fee-for-service rather than a fixed-capitation model; covering only primary care doesn’t reflect the broad scope usually intended by global capitation; and transferring risk to patients is not how global capitation operates—the risk is transferred to providers.