Final answer:
In healthcare and educational organizations, allocating resources based on a unit's performance capacity is known as incentives-based planning and budgeting.
Step-by-step explanation:
In the context of healthcare and educational organizations, when space, human resources, and the equipment budget are allocated based on the performance capacity of the unit, this system is referred to as incentives-based planning and budgeting. Unlike the fee-for-service model where providers are reimbursed based on the services' costs, or the health maintenance organizations (HMOs) model where allocation is by patient number, incentives-based planning and budgeting empower units to manage resources efficiently in direct correlation to their outcomes and performance measures. This approach helps in potentially preventing issues like adverse selection in insurance markets by aligning incentives more closely with performance objectives.