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.
Drawbacks of a Capitation System. While there are several benefits of a capitation system to a doctor, there are few benefits of a capitation system to a patient. The detriment is that the doctor begins to make decisions about what care he will or won't provide because he will make more money by providing less care, a form of healthcare rationing.