Term: Capitation Funding

Glossary Definition

Last Updated: 2007-10-31

Definition:

A per capita method of funding for health services. It may be narrowly implemented as a compensation plan for physicians where the amount of revenue a practice receives is based on an amount paid per patient (capitation fee) times the number of patients the practice treats (practice population) regardless of the number of visits. More broadly implemented, capitation funding may be used to fund geographical areas to provide all health services to residents, and may be adjusted to reflect characteristic of the residents.

Related terms 

• Blended Funding
• Capitation System
• Fee-For-Service (FFS)

References 

• Finlayson GS, Forget E, Ekuma O, Derksen S, Bond R, Martens P, De Coster C. Allocating Funds for Healthcare in Manitoba Regional Health Authorities: A First Step--Population-Based Funding. Manitoba Centre for Health Policy, 2007. [Report] [Summary] (View)

Term used in 

• Menec V, Black C, Roos NP, Bogdanovic B. Defining Practice Populations for Primary Care: Methods and Issues. Winnipeg, MB: Manitoba Centre for Health Policy and Evaluation, 2000. [Report] [Summary] (View)