Define the term "capitation" in pharmacy practice.

Capitation refers to a payment model in healthcare, including pharmacy practice, where a provider receives a fixed amount of money per patient for a specific time period, regardless of the amount of services provided. This approach incentivizes providers to offer preventive care and manage patient health effectively since they benefit from keeping patients healthy and managing costs efficiently.

In this model, because the payment is predetermined and not based on the number or type of services rendered, it encourages the provider to focus on the quality of care rather than the quantity of services. By receiving a consistent payment per patient, providers are more likely to engage in cost-effective practices, potentially improving patient outcomes while controlling expenditures.

This understanding of capitation is critical, especially for pharmacy practices, as it can influence how pharmacists dispense medications, offer consultations, and manage patient care in a way that aligns with overall health management rather than merely responding to immediate service requests.