The managed care concept called "capitation" refers to:

It refers to managed care reimbursement that prepays providers for services on a per-member per-month basis whether or not services are used

This form of concept is beneficial for rewarding the medical personals appropriately according to the amount of workload that they did.

In capitation, the medical personals who handle more patient would obtain the largest amount of payment while the personnels who lazied around might not get paid at all.