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fee-for-service

 

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Fee-for-Service

Fee-for-Service, also known as FFS, refers to a payment model where healthcare providers receive compensation for each service or treatment they provide to a patient, rather than receiving a fixed salary or capitated payment. In this model, doctors, hospitals, and other healthcare professionals are reimbursed for each individual service, such as office visits, tests, surgeries, or medications.

Examples:
  1. Under the fee-for-service system, the doctor charges a specific fee for every consultation.
  2. Hospitals using a fee-for-service approach have the incentive to provide more services to increase revenue.
  3. Fee-for-service payment allows patients to have greater choice in deciding which healthcare provider to visit.

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