4 Oct 2001 17:25 AR AR143-07-LEE.tex AR143-07-LEE.SGM ARv2(2001/05/10) P1: GJC. INFLUENCES ON AVIATION EMISSIONS 187. purchase prices (I) for aircraft have increased, indicating a willingness on the part. of airlines to incur higher capital costs for lower operating costs.
Formally defined, capitation is a flat periodic payment per enrollee to a healthcare provider; it is the sole. reimbursement for providing services to a defined population. The word capitation is derived from the term. per capita, which means per person.
How Capitation and Fee-for-Service Payments Work. The traditional system of health care is that of fee-for-service. A patient visits a doctor or healthcare facility, is evaluated and treated, and pays for what was done. Capitation arises as a form of insurance for groups of people, with the intent of spreading exposure (risk) of health care, thus reducing the average individual cost per patient.