Capitated Pricing definition

Capitated pricing is a pricing model based on each customer served rather than the service performed e.g. the cost of a cloud-based payroll software package could be five pounds per employee per month.

In America, capitated pricing often refers to a pricing model used by healthcare providers to standardise the cost of similar products and devices across an industry based on the level of the product. Products could, for example, be split into Basic and Premium, with both costing the same amount regardless of whom they are being purchased from.