What is the extreme form of managed care called?

• A. Capitation
• B. HMO
• C. Capitalion
• D. Managed Care

Answer: (C)

Capitation—the fixed per-patient payment to providers for a defined period—is the extreme form of managed care. Under capitation, a clinician or organization is paid a set amount to cover most or all care for each enrolled patient, regardless of how many services the patient uses. This shifts financial risk to the provider and creates strong incentives to control costs, emphasize preventive care, and coordinate care efficiently.

The term Capitalion isn’t a recognized healthcare term, so it isn’t a correct label for this concept. HMO refers to a type of managed care organization with network restrictions and gatekeeping, not the extreme payment method. Managed care is the broad framework for cost and care coordination, within which capitation serves as a specific, more aggressive financial arrangement.