In this paper, we discuss methods to allocate national health care funds to purchasers or insurers of health care. For administrative reasons, resources are usually allocated as they always have been—which relates more closely to the existing structure and demand than to need. Resource allocation through capitation is needed to achieve equity in access to health care or health outcome. Capitation should be based on epidemiological or sociodemographic need factors. The author discusses how to select and weight need factors and provides examples ...