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What is a capitation?

What is a capitation? Here are some definitions.

Noun
  1. Performing a headcount; the counting of people.
  2. A poll tax.
  3. A system of remuneration for providers of health care, in which providers enroll patients as permanent clients and receive a fixed periodic payment for each enrollee.
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Examples
These are the capitation tax on sheep, and the export duties on wine and silk.
By combining several regional groups of physicians, they were able to negotiate capitation payments for large patient populations.
Akin to the tax that has just been described, at least in its nature as a direct impost, is the poll or capitation tax.
In single provider markets, purchasers could use this information to adjust further the capitation rates.
The state would pay the salaries of teachers, capitation fees for every student and fund the construction of schools.
These policies usually mandate low levels of capitation on the total amount that can be allocated for these services.

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