Advantages Of Ffes In Healthcare

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Fee for services (FFS) and Capitation are two different types of payment methods you can use for health care providers. For capitation the health care providers are supposed to receive a set amount every time they see a patient. The more procedures you need done by your healthcare provider the higher your bill is going to be. The doctor gets paid the same amount of money no matter how big or small the procedure is. An example for capitation is if the insurer or the buyer agrees to pay the health care provider $300 a year for each person so if there was a 1,000 people the insurer would be responsible to pay the health care provider 300,000; but the healthcare provider is held accountable to provide all the supplies for those 1,000 patients. …show more content…
If no patients receive health care then the health care providers that go through capitation will have no financial risk. The healthcare providers want to increase as many patients as possible to receive a monthly payment from each patient. As for Fee for service it all depends upon what type of procedure you are getting done that determines the cost for the patient. FFS is the complete opposite for incentives and it has a way less financial risk in the system. The health care provider’s incentive is to grow as many services as they can to the patients during their visit as well on expanding on the number of visits. The insurer will pay the healthcare provider for every procedure and test them provide for the patient without calculating the
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