§ 100565 Department Reimbursement Flexibility

• •The department can use any reimbursement method it wants.
• •Methods include negotiated rates, capitation, fee‑for‑service, or any other cost‑saving approach.
• •The purpose is to lower administrative expenses while still paying for services.

A state health department signs a contract with a community clinic to provide flu shots.

Even though the contract says the department will be reimbursed, the law lets the department choose any payment style—like a flat monthly fee (capitation) or paying per shot (fee‑for‑service)—so it can pick the cheapest way to handle paperwork.