Capitation often relates to mandatory fees by a government; think of it as a per-head charge.

Tax Context

Capitation can sound archaic because such taxes were more common in the past.

Historical Use

Capitation suggests a financial impact on individuals, not businesses or groups.

In medical contexts, capitation is about the patient-provider payment agreement.

Capitation helps healthcare facilities predict income by knowing the patient count.

Capitation is a gamble for providers; fewer patient issues mean more profit and vice versa.