Fee for service (FFS) is the most traditional payment model of healthcare. In this model, the healthcare providers and physicians are reimbursed based on the number of services they provide or their procedures. Payments in an FFS model are not bundled. This means that the insurance companies or the government agencies are billed for every …
US healthcare is researching ways to tackle the challenges of lowering costs and improving the quality and the outcome. The traditional, age-old Fee for Service model is under scrutiny for being expensive and for focussing on rewarding medical providers for volume and quantity of services rather than the results. Within the current fee-for-service system there are incentives …
Capitation vs. Fee-for-Service Healthcare Payment Models Key Points Comparing Fee-for-service vs. Capitation The Fee-For-Service (FFS) payment model has increasingly been seen as costly and cumbersome overall to providers. Medicare programs highlighted the need to transition to a quality-based payment model, which is Capitation. Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) legislation improves Medicare …
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