The form of payment that is based specifically on the individual components of health care is.

The correct answer is A. Fee-for-service reimbursement. Fee-for-service (FFS) reimbursement is correct because providers are paid separately for each individual service, procedure, or component of care delivered - every lab test, office visit, and procedure generates its own distinct charge and payment. Per Diem (B) pays a flat…

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Question

Options

AFee-for-service reimbursement.
BPer Diem payment.
CReimbursement by episode of illness.
DCapitation payment.

How the community answered

(29 responses)

A
86% (25)
B
3% (1)
C
7% (2)
D
3% (1)

Explanation

Fee-for-service (FFS) reimbursement is correct because providers are paid separately for each individual service, procedure, or component of care delivered - every lab test, office visit, and procedure generates its own distinct charge and payment.

Per Diem (B) pays a flat daily rate for each day of care, bundling all services into one daily amount regardless of what was actually done. Episode of illness (C) bundles payment across an entire course of treatment for a condition, not individual components. Capitation (D) pays a fixed amount per enrolled patient per period of time, regardless of how many or how few services that patient uses.

Memory tip: Think of FFS like a restaurant where you pay à la carte - each item on the menu (each service) has its own price tag. The other options are more like meal deals or subscriptions where everything is bundled together.

Topics

#Fee-for-Service Reimbursement#Healthcare Payment Models#Claims Reimbursement

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