What is a capitated agreement in the context of surgical instrument repair?

• A. A commission-based repair agreement
• B. A contract for a temporary repair
• C. A flat fee contract for servicing instruments
• D. A warranty for instruments

Answer: (C)

In the context of surgical instrument repair, a capitated agreement refers to a flat fee contract for servicing instruments. This means that a set fee is established for a range of repair services over a specific period. This structure allows healthcare facilities to budget for their repair costs more effectively, as they have predictable expenses instead of variable costs that could fluctuate based on the number of services rendered.

Such an agreement is advantageous for both the service provider and the healthcare organization, as it often includes regular maintenance and can lead to quicker turnaround times due to the established relationship and agreed-upon terms. This arrangement provides peace of mind, knowing that all necessary repairs are covered under a single fee without the worry of unexpected costs.