Etymology:
Meaning:
Origin:
Capitation originated in ancient Rome as a system for taxing citizens based on their wealth and status. Individuals were assessed a fixed amount based on their estimated income and property, regardless of their actual consumption of services.
In the Middle Ages, capitation was used to pay for medical care for the poor. Doctors were taxed per capita, and the funds raised were used to provide healthcare to those who could not afford it.
In the 20th century, capitation was reintroduced in the United States as a way to control rising healthcare costs. In 1985, the Centers for Medicare and Medicaid Services (CMS) introduced the prospective payment system (PPS) for hospitals, which established fixed rates for hospital stays based on the patient's diagnosis.
Capitation has since been used as a payment model for a variety of healthcare services, including primary care, specialty care, and mental health services.
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