EXPLORE HEALTHCARE PAYMENT SYSTEM
What are the 3 main payment models in healthcare? 1. Fee-For-Service - As the name implies, it compensates providers for each medical service provided to patients. Consultations, tests, scans, and prescriptions are all included. It is the most common healthcare payment system model in the United States and is widely regarded as the primary cause of high healthcare costs. 2. Capitation: In this model, providers are paid a fixed monthly amount for each enrollee. Because of the fixed budget of the health plans allocated to enrolees, capitation provides incentives to reduce care costs. Physicians face financial risk if the cost of the care they provide exceeds the monthly payments they receive. 3. Salary: Providers who are paid in salary are usually paid by the organisation for which they work, such as a hospital. They face no financial risk and are not incentivized to change their treatments to accommodate health plans. However, their employment may include performance-based incentives i