​Explain the pros and cons of four provider payment methods and see below

timer Asked: Oct 16th, 2018
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Question Description

Explain the pros and cons of four provider payment methods: (a) fee-for-service; (b) capitation; (c) global capitation; and (d) bundled payment.

  • Based upon your review on the above payment methods, what is your recommendation for the mainstream of provider payment(s)? Be sure to include a detailed account of the benefits and risks.

Must be two to three double-spaced pages in length and formatted according to APA style. Must use at least three scholarly sources or peer-reviewed less than 5 years old.

Tutor Answer

School: University of Virginia



Provider Payment Methods
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Provider Payment Methods
Fee-for-service is recognized as a payment method where services are unbundled and
paid for separately. Fee-for-service is highly considered in the health insurance as well as the
healthcare industries especially if doctors and other health care providers receive a fee for each
individual service for example test, office visit, procedure, or even other health care services.
There are a number of disadvantages associated with this payment method. Fee-for-service can
to a great extent generate uncertain financial climate for providers based on the idea that finances
depend on the number of services rendered (Silvers et al., 2018). This is to mean that it may
potentially incentivize providers to schedule more unnecessary medical procedures. Again, with
this method of payment, the projected gain per patient being dealt with will vary widely
primarily because some of these patients will require little to no care, while at the same time
there are those patients that require extensive treatments. Therefore, it is worth noting that Feefor-service (FFS) is a volume-based system that can turn out costly as well as cumbersome for
both the patient and also the provider.
There is yet another payment method known as capitat...

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