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Running head: PROVIDER PAYMENT METHODSProvider Payment MethodsNameInstitutional AffiliationDate1PROVIDER PAYMENT METHODS2Provider Payment MethodsFee-for-service is recognized as a payment method where services are unbundled andpaid for separately. Fee-for-service is highly considered in the health insurance as well as thehealthcare industries especially if doctors and other health care providers receive a fee for eachindividual service for example test, office visit, procedure, or even other health care services.There are a number of disadvantages associated with this payment method. Fee-for-service canto a great extent generate uncertain financial climate for providers based on the idea that financesdepend on the number of services rendered (Silvers et al., 2018). This is to mean that it maypotentially incentivize providers to schedule more unnecessary medical procedures. Again, withthis method of payment, the projected gain per patient being dealt with will vary widelyprimarily because some of these patients will require little to no care, while at the same timethere are those patients that require extensive treatments. Therefore, it is worth noting that Feefor-service (FFS) is a volume-based system that can turn out costly as well as cumbersome forboth the patient and also the provider.There is yet another payment method known as capitation. In this case, an insurer orphysician association pays a doctor or hospital a fixed amount of money per pa ...


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