Fee-for-Service
A payment model in medical insurance in which reimbursement is billed per service delivered. It incentivizes the volume of services rather than health outcomes and is a major institutional cause of medical cost inflation and the underprovision of preventive services.
Timeline (last 90 days)
Fee-for-Service is the traditional payment model of U.S. Medicare, in which doctors and hospitals are reimbursed for each service they provide.
The fee-for-service model inherently incentivizes volume of services rather than health outcomes, because low-fee items such as preventive consultations and patient education yield far less revenue per unit of time than surgery or imaging exams.
All Facts (2)
Fee-for-Service is the traditional payment model of U.S. Medicare, in which doctors and hospitals are reimbursed for each service they provide.
50%UnverifiedThe fee-for-service model inherently incentivizes volume of services rather than health outcomes, because low-fee items such as preventive consultations and patient education yield far less revenue per unit of time than surgery or imaging exams.
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