Describe provider incentives and risks under each of the following reimbursement methods:
Cost-based, Charge-based, including discounted charges. Prospective payment, Capitation.
Sample Solution
Fee-For-Service:
Provider Incentives: Under a Fee-For-Service reimbursement method, providers are incentivized to provide as much care as possible since they are reimbursed based on the services they deliver. This method rewards providers for high volume and allows them to receive payment more quickly than with other methods. It also allows them greater autonomy in their practice since it is not tied to any pre-defined treatment plans or set of benefits.