The capitation funding attributable to them must also transfer to the new organization. Funding through weighted capitation. Capitation funding is a population-based system of financial allocation from the central health budget to the health care organization. Demographic characteristics that impact on health care needs, such as age and gender, must be incorporated into the capitation. Such factors bring greater specificity to the formula in determining the level of required funding.
Capitation brings consistency, equity and fairness to funding distribution.
Management of a finite budget stimulates heightened service orientation and the provision of appropriate interventions by providers and organizations. Capitation results in a focus on patient care as opposed to building up infrastructure. The capitation formula must be weighted for age and gender at a minimum, with consideration for needs, regional differences and other factors to maintain specificity in the relationship between cash requirements and the predicted cost of serving the needs of the rostered population. Autonomy in the development of organizational and financial relationships with providers. Health organizations should have the autonomy and freedom to develop the most appropriate operating procedures and organizational and financial relationships with providers, in order to provide the most appropriate services to its rostered population.