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What are the effects on both provider and patient behaviours?

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What is the effect of two payment mechanism (fee-for-service and capitation) on provider behaviour?

What is the impact of deductibles and co-payments on patients' health seeking behaviour?

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Solution Summary

With the changes in healthcare, it is important to understand the effects of capitation and fee-for-service on providers behaviors towards their patients as well as the healthy behaviors of patients based on insurance premiums, co-payments, and deductibles.

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What is the effect of two payment mechanism (fee-for-service and capitation) on provider behaviour?
Fee-for-service: According to the Cochrane Review, FFS physicians had more face-to-face contact visits with patients with more diagnostic and interventions but fewer hospitalizations and repeated prescriptions than that of capitation. Compliance to the FFS number of visits per year was higher as well as continuity of care. Patients, however, were less satisfied with the access to their provider. http://apps.who.int/rhl/effective_practice_and_organizing_care/cd002215/en/

However, many will debate that physicians tend to order more unnecessary tests and procedures when paid under the FFS model. Since doctors get paid for services and not outcomes, they are more ...

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