For some time, the Government had been trying to introduce a capitation model, that is, give practices a set amount of money depending on the population they served.
The formation of the voluntary IPAs gave the Government an important stepping stone to introduce capitation-based funding.
PHOs include general practitioners, nurses, and other health providers such as pharmacists and physical therapists.
[6][5] Primary health organisations are allocated funds depending on the characteristics of their enrolled population (a form of capitation).
The PHO receives a set amount of money from the district health board for every member, depending on their age, sex, ethnicity and socioeconomic status.