Capitation: a service by another name

Abstract

Fee for service and capitation systems are usually regarded as different methods of medical remuneration, however, they can be seen to differ mainly in the degree to which they 'bundle' or 'package' medical services. A capitation system for general practice services in Australia could be established by the creation of a Medicare item and benefit for a year's general practice care. This would allow doctors to assess the benefits of capitation without a total and potentially traumatic commitment, and may encourage innovation in the efficient delivery of primary health care.