Scope: This study aims to understand better how healthcare payment systems affect the delivery of healthcare and its utilization.
Post: The difficulty of payment models involves balancing fair and proper payments for services with reducing costs. They must also avoid providing care that is unnecessary and ensure sufficient funding to enable people to receive the services they require. Of all possible payment options, the fee-for service model is most closely scrutinized.
For this week’s discussion post, read this week’s required readings and resources and contemplate the role of the fee for service payment model. Define the fee for services payment model. Is this contributing to rising health costs? Do you have any suggestions for how our healthcare system could reduce costs and still provide the best care possible?
There are several ways to pay for services
FFS (fee-for-service) refers to a system where doctors, hospitals, and medical offices charge for every service provided. Patients or their insurers pay the health care provider whatever fee they feel is necessary. A fee-for service model is dependent on a budget. It results in longer wait times for patients who are not urgent and more pressure to raise expenditures when required. This payment option has long been the main one in US healthcare.
FFS is one of the most complex models to manage in terms of finances.
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