Capitation is a payment model used in healthcare where providers receive a fixed amount of money per patient, regardless of the number of services provided. This means that doctors and hospitals are paid a set fee for each patient they care for, which encourages them to focus on preventive care and overall health rather than just treating illnesses. This system can help control healthcare costs and improve patient outcomes by promoting efficient care. However, it also requires careful management to ensure that patients receive the necessary treatments without compromising quality. Overall, capitation aims to create a more sustainable healthcare system for both providers and patients.