In a fee for service medical plan, how are providers compensated?

In a fee for service medical plan, providers are compensated for their billed charges for each service they provide. This means that whenever a patient receives medical care, the provider can bill for the specific services rendered, and payment is made accordingly. This model incentivizes providers to deliver more services since their income is directly linked to the volume of care provided. Additionally, patients may have a more direct connection to their choices in care, as they often see the specific costs associated with each service received.

In contrast to the options related to fixed salaries or flat fees per patient, which might imply a more limited or bundled payment approach, the fee for service model allows for an itemized billing system. This can lead to more variability in income for the providers based on patient needs and the frequency of service delivery.