How is the "fee-for-service" reimbursement model defined?

The fee-for-service reimbursement model is primarily defined by the principle that healthcare providers receive payment for each individual service they perform. This model stems from the idea that providers should be compensated for every specific treatment, procedure, or consultation they provide to patients. In this system, reimbursement is based on the quantity of services delivered rather than the quality or outcomes of care.

This approach allows for detailed billing for each service offered, which can lead to higher revenue for providers as they can charge separately for various components of care, such as office visits, tests, and treatments. While this model can sometimes lead to an increase in the volume of services rendered, it does not inherently incentivize preventative care or promote efficient use of resources, as there is no built-in mechanism to encourage providers to focus on overall patient health outcomes.

The other options present reimbursement models or concepts that do not align with the fee-for-service definition. For example, a model that pays a set fee per patient per month suggests a capitation arrangement, which is different from fee-for-service. Additionally, models that incentivize preventative care typically involve value-based care or other alternative payment methodologies that focus on health outcomes rather than the sheer volume of services provided. Lastly, requiring payment upfront is generally associated with direct