Capitated Pricing

Posted in Finance, Accounting and Economics Terms, Total Reads: 1169

Definition: Capitated Pricing

Capitated pricing is a pricing model / a payment arrangement for health care service providers to purchase medical products and devices from a variety of Original Equipment manufacturers at set levels based on product levels.

For example, there may be three levels: standard, medium, and low. Original Equipment manufacturers will establish their products that make these products “equal” from a clinical effectiveness point of view. The Original Equipment manufacturers will pay the same amount for products in each category, of standard, medium and low. Like for example, 3000$ for standard products, 2000$ for medium products, and 1000$ for low products. The pricing model also helps the Original Equipment manufacturers to produce or introduce a niche product that doesn’t fit into the above categories, if they provide the necessary clinical reasoning behind it.

Search & Explore : Management Dictionary

Browse the definition and meaning of more terms similar to Capitated Pricing. The Management Dictionary covers over 7000 business concepts from 6 categories.


Share this Page on:

Similar Definitions from same Category: