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.

More HR Terms

Assessment Centre

What is Assessment Centre?   An ‘Assessment Centre’ is a location where any kind of assessment takes place. Concerning HR, an ‘assessment centre’ would be

Intangible Rewards

What is Intangible Rewards ?    ‘Intangible Rewards’ refers to those rewards that are provided to an employee which doesn’t have a monetary value. These

Golden Handcuffs

What is Golden Handcuffs ? ‘Golden Handcuffs’ refers to the various monetary and other benefits which an employee is provided until they stay with the

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’