Capitation Rate Calculator

How to Use the Calculator

1. Enter the total annual healthcare costs in the "Total Annual Healthcare Costs" field.
2. Enter the population size (number of people) in the "Population Size" field.
3. Click the "Calculate" button to compute the capitation rate.
4. The result will be displayed in dollars per person.

Understanding Capitation Rate

Capitation rate is a fixed payment made to healthcare providers per person covered under a health plan. It's a common method in healthcare financing where providers receive a set amount per enrolled individual, regardless of the actual services provided.

Example Calculation

For example, if a health plan has 1,000 people and total annual healthcare costs of $500,000, the capitation rate would be $500,000 ÷ 1,000 = $500 per person.

Practical Applications

• HMOs (Health Maintenance Organizations) use capitation to budget healthcare costs
• Healthcare providers use it to determine their revenue based on enrolled patients
• Policymakers use it to evaluate healthcare spending efficiency