capitation
- n a tax levied on the basis of a fixed amount per person
- Still, the competition to win contracts is so keen that the system's capitation rate--the cost per patient, which averages $1,824 a year--dropped 11% last year.
- Under a system known as capitation, which pays HMO providers a set monthly fee for each enrolled patient, doctors are offered a financial incentive to limit both the number of .
- Cynics may contend that doctors mainly want to protect their incomes by preventing HMOs from lowering capitation (per patient) payments.