Capitation is a set fee paid by an insurance company to a physician for each person he treats, regardless of the exact services provided. In a non-capitated system, alternatively, an insurance company pays doctors based on the actual medical services provided. Capitation relates to a personal injury case because it is an issue that may arise in “subrogation.” This is a legal term that means: a plaintiff's insurance company can recover any money that it paid to the plaintiff (e.g., for medical expenses), and it can recover that money from the person that caused the plaintiff's injury (typically the defendant). Note that, per Cal. Civ. Code 3040, if an insurance company pays a doctor on a capitation basis, then: for subrogation purposes, when the company attempts to recover medical payments that it made to the plaintiff, the insurance company is limited to recovering 80% of any usual charge by medical providers on a non-capitated basis.