Capitation-based payments are based on the numbers of the enrolled primary health organisation (PHO) population. This means that PHOs and their general practices are paid according to the number of people enrolled, not the number of times a provider sees patients.
This system is generally called capitation since it is based on a payment per capita (per head).
In general, people need more care when they are very young and as they get older. Women in their child-bearing years tend to need services more frequently than men. The formula for calculating capitation payments takes into account the demographic make-up of the population.
In some cases health services may sometimes more appropriately be provided by a nurse than a doctor. Therefore, the capitation-based payment system does not require a doctor to see each patient every time