What is the hallmark of Fee For Service reimbursement?

What is the hallmark of Fee For Service reimbursement?

• A. Payment for each good or service provided
• B. Payment adjusted based on quality of care
• C. Fixed monthly payment per patient
• D. Payment based on patient satisfaction scores

Answer: (A)

The defining idea is that providers are paid for each individual service delivered. In fee-for-service, every visit, test, procedure, or other service is billed separately, so revenue tends to rise with the volume of care provided. This contrasts with models where payment is a fixed amount per patient (capitation) or is adjusted based on quality or outcomes (value-based or pay-for-performance). So, the hallmark is payment for each service rendered, not a bundled or outcome-based approach.

The defining idea is that providers are paid for each individual service delivered. In fee-for-service, every visit, test, procedure, or other service is billed separately, so revenue tends to rise with the volume of care provided. This contrasts with models where payment is a fixed amount per patient (capitation) or is adjusted based on quality or outcomes (value-based or pay-for-performance). So, the hallmark is payment for each service rendered, not a bundled or outcome-based approach.