Primary Health Care

Capitation Funding

The capitation based payment system is based on the enrolled PHO population. PHOs and their general practices are paid according to the number of people enrolled not the number of times a provider sees patients. This sort of system, which has been used for years in some overseas countries, is generally called capitation since it is based on a payment per capita (per head).

In general, people need more care when they are very young and as they get older. Also women in their child-bearing years tend to need services more frequently than men. So capitation payments have to reflect the make up of the population.

In some cases health services may sometimes more appropriately be provided by a nurse than a doctor. Therefore, the capitation based payment system does not require a doctor to see each patient every time.

View the PHO Capitation Rates as of 1 January 2008

Page last updated: 18 March 2008