Capitated Pricing

What is Capitated Pricing?

 

‘Capitated Pricing’ is a kind of pricing model in which the pricing is based on each customer being served rather than the service provided. For example, HR software generally quotes their price on a per-employee basis rather than providing a cumulative figure based on the company size and complexity.

 

This kind of pricing helps the buyer availing the services choose the vendor easily as it provides a standardized way of comparing one vendor to the other. The pricing would also be customized based on the complexity of the organization, however, it will still set a standardized price on an individual basis.

 

Capitated pricing is generally used to pay healthcare systems. It is used to pay a predetermined amount for each enrolled individual, for a particular period, irrespective of the fact that the person seeks out medical care.

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