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.
System dynamics software provides an appropriate medium for demonstrating the flow of funds associated with healthcare reimbursement and for illustrating the impact of typical management decisions. Three reimbursement methods are modeled generically: cost-based reimbursement, prospective payment, and capitation. Cost-based reimbursement results in a payment to the provider based upon the cost of the resources consumed to provide care.