What is withheld and how does it pertain to capitation payments?

Capitation payment refers to a fixed amount of money that is paid to a doctor or an hospital on a monthly basis as a remuneration for the services rendered to each enrolled patient during the course of the month. Capitation payment is usually used by those enrolled in a health plan. Withed payment refers to a portion of the capitation money that is typically withhold for a period of time [usually 12 months] in order to induce the service providers to work efficiently. This money may not be paid to the service providers at the set time if they refuse to work within the budgeted resources.