Pros And Cons Of The Fee For Service Model

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Fee for Service: Another aspect of shared risk contracts is fee for service models. This is the most popular model in today’s health care society. Basically under this model, the provider is paid for each of the services provided to the patient. This is different from other health sectors because in other sectors price is based off of what the patient is willing to pay for. Unlike other sectors the fee for service model negotiates the prices between the two parties, the payers and the providers. The fee for service system is characterized by a coding system and guidelines. These codes are the CPT and ICD-9 codes. These codes determine what can and cannot be paid for and what to charge out.
Advantages:
There are clearly some positives of the fee for service payment system. This system puts and emphasis of productivity in health care. It is done by promoting the delivery of health care and capitalizing and maximizing visits to the providers. This method is also a flexible method. Meaning, that this method will still be utilized no matter what type of care is being provided to the patients. It does not matter if the patient is getting a surgery, therapy session, doesn’t matter what the size of the practice or the place of delivery. …show more content…

One con of the fee for service model it does not provide incentives for those that promote preventative care or those that provide efficient services. This model also makes it difficult to take care of cases by other ways such as email, phone or care coordination since generally all patient interaction is done personally and face to

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