What is the current model of payment?

What is the current model of payment?

• A. Capitation model
• B. Pay-for-performance model
• C. Salary-based model
• D. Fee-for-service model

Answer: (D)

Fee-for-service is the payment approach where providers are paid for each service, visit, or procedure performed, with reimbursement tied to the quantity of care rather than outcomes. In this model, billing is typically done with codes that reflect every distinct service, so income increases as more services are provided. It’s the prevailing arrangement in many healthcare settings today because it directly rewards work done and aligns with traditional billing practices. While there are shifts toward value-based approaches—such as capitation (payment per patient), salary-based pay, or pay-for-performance (quality bonuses)—fee-for-service remains the most common current model because of its straightforward, activity-based payment structure.

Fee-for-service is the payment approach where providers are paid for each service, visit, or procedure performed, with reimbursement tied to the quantity of care rather than outcomes. In this model, billing is typically done with codes that reflect every distinct service, so income increases as more services are provided. It’s the prevailing arrangement in many healthcare settings today because it directly rewards work done and aligns with traditional billing practices. While there are shifts toward value-based approaches—such as capitation (payment per patient), salary-based pay, or pay-for-performance (quality bonuses)—fee-for-service remains the most common current model because of its straightforward, activity-based payment structure.