Under primary care capitation, providers do have patients assigned to their care and a fixed payment is paid to the providers, regardless of the numbersnumber of patients they have to care for. The care is mainly set for a period of time, and payment does not change, even when some patient doespatients do not receive care.

One of the advantages of the capitation is that the insurer is aware of the fixed payment to providers for care and the benefit theythat can be derived from their services at no extra cost. Knowing this will save insurerinsurers on unnecessary spending.
The disadvantage, in this case, willwould be lack of adequate care; provider, as providers might need to care for more patients due tofor financial reasonreasons. AtIn this pointcase, the quality of care iswould be poor, because providers with lots of patients might try to stabilize a patient for the time being. If the provider doesn’t have the time to re-evaluatereevaluate the patient it could lead to other illnessillnesses.