Purchase Solution

fee-for-service and capitation payment methods

Not what you're looking for?

Ask Custom Question

What are the major differences between fee-for-service and capitation payment methods? What provider incentives are created under each of these methods? Which of these two payment methods carry the least risk and the most risk for providers? Please provide references and a min of 250 + words.

Purchase this Solution
Solution Summary

Capitation and fee-for-service (FFS) are two different methods that are used to pay for services provided by health care providers. These methods differ in incentives and risks to the providers.
This guideline which is in point form provides an outline for preparation of a narrative to discuss the diffrenecs, incentives and risks associated with each method.
References have been included therein for the student's further reading.

Solution Preview

Helo,
Please find below a guideline for a discussion on fee-for service and capitation payment methods in pont form for you to prepare a 250 word write up.
Feel free to come back if you have any questions.
If you are happy with the solution, kindly give a rating for example 5.

Thank you for choosing BrainMass

Fee-for-service and capitation payment methods
1. What are the major differences between fee-for-service and capitation payment methods?
1.1. Capitation and fee-for-service (FFS) are two different methods that are used to pay for services provided by health care providers
1.2. Capitation refers to a predetermined payment amount paid by a payer or managed care organization (such as a Health Management Organization) to a service provider (such as a doctor) for every patient (per capita) who is enrolled in that HMO that they see (i.e. in which physicians receive a fixed salary regardless of level of care provided physicians are reimbursed according to volume of care provided) Slattery et.al 2013. For example if a doctor is part of an HMO that has enrolled 250 patients at a rate of $10 per patient, the doctor will be paid a monthly rate which assumes that they have seen all the 250 patients i.e. $2500.
1.3. A Fee for Service (FFS) is a payment system whereby service providers (e.g. doctors) are paid for each service they provide at a rate that is predetermined for each service (i.e. physicians are reimbursed according to ...

Purchase this Solution
Free BrainMass Quizzes
What everyone should know about MRSA

This quiz focuses on what everyone should know about community MRSA. Community MSRA is an infection in healthy people.

CPR (Red Cross Standards)

Are you up to date on your CPR skills? Find out if you know what to do in an emergency with this quiz.

Test your health planning and program evaluation knowledge

Health planning and program evaluation is an important aspect of the Health Sciences' field. Organizations and communities must understand the needs of their audiences, and a way to obtain this datum is through proper design and assessment. This quiz will test your ability to understand the importance of planning and evaluation in the health sector.

Managed Care Organizations

This quiz will test the basics of managed care organizations. It is important to know how our health care delivery system operates through managed care.

Labor and Delivery

Do you know about the stages of delivery? Find out with this quiz!

View More Free Quizzes
Related BrainMass Solutions

  • Fee-for-service vs Capitation Payment for Providers

    Hello, Fee-for-Service (FFS) and Capitation are two different payment methods for providers.

  • Compensation and Reimbursement plans

    531001 Compensation and Reimbursement plans Please help with the following problem. Include at least one reference as part of the solution. What is the difference between capitation and fee for service (FFS)?

  • Fee-for-Services and Managed Care Organizations

    Retrieved from http://www.ahrq.gov/research/apr05/0405RA36.htm The solution includes a discussion on the payments methods of a Fee-for-Service (FFS) and the Managed Care Organizations (MCO) plans (with an hypothetical payment comparison between the plans

  • Payment methodologies in health care plans

    479485 Payment methodologies in health care plans Compare and contrast payment methodologies between Fee-For-Service (FFS) and Managed Care Organization (MCO) plans.

  • What are the effects on both provider and patient behaviours?

    592633 What are the effects on both provider and patient behaviours? What is the effect of two payment mechanism (fee-for-service and capitation) on provider behaviour?

  • Medicare reimbursement to health care providers

    Firstly there is the fee-for-service category - where a provider is paid for providing a specific service, as discussed above.

  • The pros and cons of working with capitation

    The system of capitation is efficient when you consider the overhead involved in billing individual fee for service visits, however it does financially incentivize providers for not rendering expensive care.

  • Capitation

    Earlier, the payment to the physicians was made on fee-for-service basis. Under which, the cost was based on the service provided. But times changed and capitation payment system was adopted by the healthcare institutions.

  • Implications of Managed Care for Healthcare Providers

    Fee-for-service reimbursement presented ethical challenges by assuring reimbursement for utilization of services and procedures that were ordered for the health benefit of the patient.

View More Related Solutions