Which characteristic is true for providers under capitation arrangements?

In capitation arrangements, providers receive a fixed amount per patient, usually per month, regardless of the quantity or nature of services provided. This payment structure creates a clear incentive for providers to limit services, as they benefit by managing health care costs within the budget of the capitation payment. If they can keep patients healthy and reduce unnecessary services, they can improve their financial performance since they are not paid additionally for every test, visit, or procedure.

This incentivizes efficiency and often encourages providers to focus on preventive care and effective management of chronic conditions. In contrast, the other options suggest scenarios that do not align with the nature of capitation. For example, charging patients for each service would contradict the principle of a fixed payment model, while unlimited service utilization is not feasible under a capitation system as it would lead to financial losses for providers.