Interesting facts about capitation, which in my state started in the 90s - Banshee

Basically, it is when hospitals and the healthcare system became a 'business' (or shifting of business risk = MORE PROFIT) and no longer as they were originally intended, to help the poor (http://www.naph.org/Homepage-Sections/Explore/History.aspx), or Hospital: It may seem unnecessary to define a "hospital" since everyone knows the nature of a hospital. A hospital began as a charitable institution for the needy, aged, infirm, or young.

>'The word "hospital" comes from the Latin "hospes" which refers to either a visitor or the host who receives the visitor. From "hospes" came the Latin "hospitalia", an apartment for strangers or guests, and the medieval Latin "hospitale" and the Old French "hospital." It crossed the Channel in the 14th century and in England began a shift in the 15th century to mean a home for the elderly or infirm or a home for the down-and-out.

"Hospital" only took on its modern meaning as "an institution where sick or injured are given medical or surgical care" in the 16th century. Other terms related to hospital include hospice, hospitality, hospitable, host, hostel and hotel. The Hotel-Dieu, a name often given to a hospital in France during the Middle Ages, is the hotel (of) God.'<
__________________________________________

~ Personally, in my opinion, I believe the name should be changed. We have no more "hospitals" because bottom line they are businesses, and businesses who are interested in making profit more than helping people. This is evidenced by simply looking at Medical Transcription and how it has deteriorated as it has - now going to the 'lowest' bidder, and more concerned about grammar than patient care.  

This capitation was planned for years at the hospital I worked at; in fact, we had employee 'around-the-clock' meetings explaining the changes that were coming. Soon after, over 150 employees were let go in 1 day, from all departments, and outsourcing of ancillary departments had begun.  Doctors no longer had a say in patient care, that is probably the worst thing I can see out of it. Every single element of so-called patient care is decided upon by statistics (based on region) and by the DRG Coders, insurance companies. Your care is only dependent upon that, period.