Capitation

Capitation is a term that is associated with Dental Health Maintenance Organizations. Capitation is a type of payment for dental services where the dentist is always paid a certain amount per person in the plan that he or she renders services to. The number or severity of the services does not change the amount that the dentist pays. In Capitation plans, there is sometimes a co-pay on the part of the patient.

Capitation plans have the benefit of being less expensive than other dental insurance plans. However, there are some problems when being in a capitation plan. First, the Dental Health Maintenance Organization will have a limited number of dentists on the plan. This means that you may not have your choice of dentists.

The other potential problem with capitation plans is that the dentist has no monetary motivation to provide necessary care to patients. Sometimes when in a capitation plan, patients find that they have limited access to care. The dentist may not be in a hurry to get the patient in for complicated, expensive procedures, because they are paid whether or not they do the procedure.

More Terms Explained here