Question

In this module you were introduced to the different methods for reimbursing physicians: Fee-for-Service and Capitation. Fee-for-service structures can be an incentive for over treatment; whereas capitation payments can be an incentive to under serve. In your opinion, from an ethical standpoint, which method of payment is more appropriate? Why do you feel this way?

Answer 1

Fee for service plan is a type of insurance in which the health plan will either pay the medical provider directly or reimburse you after you have filed an insuranceance claim for the medical expenses.

Capitation is a type of health care payment system in which a doctor or hospital is paid a fixed amount of money for a prescribed period whether or not that person seeks care .

From the ethical point of view , the fee for service healthcare payment system is the more appropriate one because in this the payment is given to the physician for the services they have provided to the patient while in the capitation payment system payment is given to the healthcare provider even if they don't provide healthcare services .

Hence , payment should be given to those who provide healthcare services not to the ones who don't provide any health care services .