What is the correct designation for the obligations of a health plan provider to deliver care for a fixed amount?

The correct designation for the obligations of a health plan provider to deliver care for a fixed amount is capitation. This payment model involves a healthcare provider receiving a set fee per patient, per period (usually monthly), regardless of the number of services provided to the patient during that time. This means that the provider assumes financial risk for providing a defined set of services to the patient.

Capitation encourages efficiency because providers are incentivized to keep patients healthy and minimize unnecessary treatments. Under this model, the provider is responsible for managing the healthcare needs of the patient within the predetermined payment, motivating them to focus on preventive care and cost-effective treatment options.

The other choices represent different payment structures that do not involve a fixed amount for care delivery in the same manner as capitation. Fee-for-service typically pays providers for each service rendered, creating different financial incentives. A per diem rate offers a fixed payment for each day a patient is under care, but it varies based on the duration of the stay, while a negotiated rate generally refers to a predetermined amount agreed upon between the provider and insurer for specific services, but does not establish a fixed payment per patient like capitation does.