What does a fee-for-service reimbursement system rely on?

A fee-for-service reimbursement system is fundamentally structured around the concept that healthcare providers are compensated for each individual service they deliver to patients. This means that every procedure, visit, test, and treatment has a specific price associated with it, and the provider receives payment based on the number and type of services performed.

In this model, the patient's insurance coverage can influence the amount paid, but it is not the basis of the reimbursement itself. Similarly, while the length of stay in a hospital might impact overall costs for a patient, the fee-for-service system directly ties payment to specific services rendered rather than duration. The hospital where treatment occurs also does not inherently determine the reimbursement under this system; rather, it is the details of the services provided that dictate payment.

Thus, the correct answer reflects the core principle of fee-for-service, emphasizing that reimbursement is directly connected to the specific services provided to the patient, making it the focal point of this payment model.