...HA520: Healthcare Financial Management U5D5- Initial Response 14 November 2012 Title: Fee-For-Service and/or Capitated Environment Approximately 536 words By: Lisa Martinez The purpose of this essay is to answer the following question. Consider a health care organization with which you are familiar and discuss how do providers incentives differ when the provider moves from a fee-for-service to a capitated environment? The organization that I’m most familiar with in health care is in ophthalmology and there are incentives for both fee-for-service and a capitated environment based on the financial needs of an ophthalmology practices. Throughout these difficult economic times, many physicians are in a tough position because not only do they depend on bank loans or government small business loans to get by but are also faced with defaulting on their very high balance of student loans. According to Hall (2012), there are some States that can take away a physician's license to work should the physician default on student loans. Understanding this position of possibly losing their license should they default on student loans, the physician may have to decide whether a fee-for-service or capitated payment environment is more viable to run an ophthalmology practice. The benefits of having a fee-for-service environment is a physician can better budget how much the organization could make for the day based on the number of patients scheduled as well being paid immediately as opposed...
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