Question

How participation contracts represent financial opportunities for providers. What are positive and negative ramifications of discounted fee-for-service arrangements

Answer 1

The participation contract is mainly the contract formed between a doctor and the insurance agency. The participation contract provides opportunities to the doctors (who are also known as the providers as they provide service to the patients) by providing them, new service patients. As there is no cost to the practice medicine and the insurance company covers the medical costs, it is a financial advantage for the providers. Their economy would not be affected. Besides, the providers or the doctors can also get a higher number of patients covered with insurance.

There are both positive as well as negative ramifications of discounted fees for service arrangements. The positive consequence of that service is that the doctors are being paid for the services they provide to the patients, which is very common. This way, the doctors would be more interested in treating the patients with quality and efficiency as they get paid wages for the treatment they give to the patients. On the other hand, the patients' negative ramification can be as the doctors are inclined towards the wages, so sometimes they give wrong treatment to the patients to increase the number of patients counts to get paid more for the services.

Answer 2

I AGREE WITH THIS STATEMENT