Federal Capitation Support and Its Role in the Operation of Medical Schools

The Comprehensive Health Manpower Act of 1971 authorized institutional assistance in the form of formula grants, called capitation grants, based on statutorily established amounts per student per year and a bonus for enrollment of first-year students beyond mandated levels. Subject to the availability of appropriations, medical schools were authorized to receive $2,500 for each enrolled first-year, second-year, and third-year student, and $4,000 for each graduating student.