There the many ways physicians here in the United Stated are compensated for health care services rendered to patients. In an effort to keep cost low in addition to being able to improve the quality of care to their patients, especially those with multiple chronic conditions, physicians are looking into different approaches of physician payments. A few forms of physician reimbursement are fee-for-service, fixed payments and capitation. Compensating physicians for services rendered can come in many different ways and is the choice of the health care provider which plan they choose to provide services for. One payment model would be the fee-for-service (FFS), which is a payment model where services such as physicians and health care providers are paid individually for each service performed. An example for a service would be an office visit or test (fee-for-service, n.d.). In the health care industry this form of payment gives an incentive for physicians to provide more treatments because payment is dependent on the quantity of care, rather than quality of care. Physicians are paid on fee-for-services bases at the highest rate; full cost of each service rendered. (Health Plan Payment Methods, n.d.). This payment model is based on the resourses physicians use, order and prescribes rather than the outcomes, it encourages …show more content…
For instance again, the patient goes to the doctors for an office visit. The fee for the office visit is fifty-dollars. Plans such as PPO’s often operate based on a negotiated (fixed) payment schedule of fees that are recognized charges for an office visit. The fixed fee is twenty-five dollars. The fixed payment model offers little or no incentive for physicians and providers quality of service since their motives are primarily to reduces costs all while trying to maximize their profitability (Reimbursement,