Capitation is a payment model used in healthcare where providers receive a fixed amount of money per patient for a specific period, regardless of the number of services provided. This approach encourages healthcare providers to focus on preventive care and efficient management of patient health, as they benefit from keeping patients healthy rather than performing more procedures. In a capitation system, the payment is typically made by insurance companies or government programs to healthcare providers, such as physicians or hospitals. This model can help control healthcare costs and improve access to care, but it may also lead to concerns about the quality of services if providers prioritize cost-saving over necessary treatments.