Question

Identify the basic payment methods used for the MCO to pay the provider (physician, hospital, etc.).

Is one method more fair than any of the others? Why? Why not?

Answer 1

Answer: There are many methods through which the healthcare plans pay to the provider i.e. physician, hospital etc.some of the payment methods:

1.Fee for service: Here those physician provides service get paid for all the test performed in their area.

2.Discounted fee for service: Physicians are being paid for the discounted fee service because the more the discount the moe patient will consult the physician.

3. Salary: It is the most common type remuneration. The Physicians or the healthcare systems are paid a fixed amount of salary for how many work hours spent.

Here one method is fairer than any others because most of the methods of payment have some kind risk such as because of the fixed budget that the health plan gives physicians paid by capitation have incentives which contain costs and financial risk whereas salaried physicians either in terms of what is done during each visit or the number of visits physicians have no financial incentive change their treatment patterns.