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Which type of payment approach typically offers reimbursement based on the services provided?

Capitation payment

Fee-for-service payment

The fee-for-service payment approach is characterized by reimbursement determined by the specific services rendered to patients. Under this model, healthcare providers are compensated for each individual service they perform, such as evaluations, procedures, tests, and treatments. This structure incentivizes the provision of more services, as the financial reimbursement increases with the volume of services delivered.

Unlike other payment models, fee-for-service does not bundle services or focus primarily on health outcomes; instead, its focus is on the quantity of services provided. This can lead to an increase in testing and procedures, as hospitals and physicians receive direct payment for each service, thus, it's a straightforward and traditional method for billing in healthcare.

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Global budget payment

Value-based payment

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