In which payment methodology do providers receive a fixed amount for each service regardless of the actual costs incurred?

The correct answer pertains to capitation, which is a payment methodology wherein providers are compensated with a fixed amount per patient, typically calculated on a monthly basis, regardless of the actual number of services rendered or the costs involved in providing care. This approach incentivizes providers to focus on preventive care and efficient management of patient populations, as their revenue does not fluctuate with individual patient service usage.

In capitation, the financial risk is assumed by the provider, who must manage resources wisely to ensure that the care delivered remains within the fixed payment received. This can lead to increased emphasis on managing overall patient health rather than volume of services, as care providers must decide how to allocate their resources to best serve the patients included under their capitation agreement.

Other payment methodologies listed involve different approaches. Case rate payments typically involve a single payment for a specific treatment or procedure, counter to the fixed per patient model of capitation. Per diem payments vary based on the number of days a patient receives care, leading to a cost structure dependent on actual service provision rather than a fixed fee. Discounted fee schedules entail negotiated rates for services based on fees that are often adjusted or discounted, which does not align with the fixed payment characteristic of capitation.