In terms of reimbursement, what does capitation involve?

Capitation involves a fixed payment made to a healthcare provider for each enrolled patient for a specified period, regardless of the number of services provided. This payment model incentivizes providers to deliver preventive care and manage patient health effectively, as they receive a set amount regardless of the actual services utilized. The capitation method encourages efficient use of resources and helps control healthcare costs.

The other options describe different reimbursement methods that do not align with the concept of capitation. For instance, lump sum payments represent one-time payments which could apply in a variety of cases but do not capture the ongoing nature of capitation per patient. Payments based on service volume reflect a fee-for-service model, which compensates providers for each individual service rendered, opposite to the fixed nature of capitation. Lastly, provider payment after service delivery implies a retrospective payment approach, which also doesn't resonate with capitation, where payment is made upfront for care management over time.