Which of the following is a type of prospective payment method?

Prepare for the AAPC Certified Physician Practice Manager Exam with comprehensive quizzes, multiple-choice questions, and detailed explanations. Ace your exam with confidence!

Capitation is considered a prospective payment method because it involves a fixed amount paid per patient, per unit of time, regardless of the quantity or type of services provided. This creates a predetermined budget that the healthcare provider manages, incentivizing them to provide care efficiently and focus on preventive services. The payment amount is agreed upon in advance, which is characteristic of prospective payment systems.

In contrast, fee-for-service is typically retrospective, as providers are paid for each individual service they provide after the care has been delivered, leading to variability in total payments based on the number of services rendered. Retrospective payment methods involve reconciling costs after care is provided, making them inherently different from prospective methods like capitation. Thus, capitation stands out as the primary example of a prospective payment method among the options presented.

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