Capitation removes the incentive to

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Capitation is a payment arrangement for health care service providers such as physicians, clinics, and hospitals. They receive a set amount per patient per unit of time paid in advance, regardless of how many times the patient visits or the nature of the care they require. This model removes the incentive to provide unnecessary services because the provider receives the same amount whether they see the patient many times or not at all. It encourages providers to focus on keeping their patients healthy and only provide necessary services, as providing extra, unnecessary services does not result in additional payment.

Capitation Removes the Incentive to