Fee-For-Service is a payment model commonly used in healthcare where providers are paid for each specific service they deliver. This means that doctors, hospitals, and other healthcare professionals receive a fee for every visit, test, or procedure performed. This model encourages providers to offer more services, as their income is directly tied to the number of services rendered.
However, Fee-For-Service can lead to unnecessary treatments and higher healthcare costs, as there is less focus on patient outcomes. In contrast, alternative models like Value-Based Care aim to reward providers for the quality of care they deliver rather than the quantity of services.