What is Capitation?

In U.S. health services, capitation refers to a fixed “per capita” amount that is paid to a hospital, clinic or doctor for each person served.  It is the basis for the Health Maintenance Organization (HMO).  You collect a flat fee to cover a certain number of lives and you hope that you have collected enough to do the job.  In fact, you hope you have collected enough to do the job and still have some left over for profit.  I will try to tie all of these health models together in a future blog.

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5 Responses to “What is Capitation?”

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