CAPITATION

Fixed payments paid to a provider periodically for each patient assigned to the provider. The provider is paid regardless of whether the patient is ever seen. The most common arrangement is Per Member Per Month (PMPM).
Specified amount paid periodically to health provider for a group of specified health services, regardless of quantity rendered.

FLAT RATE PAYMENT METHODS

Per Diagnosis - Fixed payment based on patient diagnosis.
Per Diem - Fixed payment per day.
Per Admission - Fixed payment based on patient admission regardless of diagnosis or number of days.
Fee-For-Service - Providers charge individually for each service provided to a patient.
Fee Schedule - Fixed payments for specifically outlined units of service or all listed fee-for-service in contract.

FLAT RATE

Fixed provider payments per episode of care regardless of intensity of services or length of services; however provider is not paid unless service is rendered. Whereas Case rate is a single fee for a specified procedure or course of treatment that is inclusive of all medical services.