Which term describes payment to a physician after a service is rendered, based on the service performed?

Which term describes payment to a physician after a service is rendered, based on the service performed?

• A. Capitation
• B. Collective bargaining
• C. Fee for service
• D. Joint venture

Answer: (C)

Fee-for-service is a payment model where a physician is paid after delivering a specific service, with the reimbursement tied directly to the service performed. Each procedure or visit is billed separately (often with standardized codes), and payment depends on the particular service provided. This contrasts with capitation, where a clinician gets a fixed amount per enrolled patient regardless of how many services are delivered, which changes incentives. Collective bargaining involves negotiations between employers and unions over wages and benefits, not how physician services are reimbursed. A joint venture is a collaborative business arrangement for sharing ownership and profits, not a payment method for medical services. So describing payment after a service is rendered, based on the service performed, aligns with fee-for-service.

Fee-for-service is a payment model where a physician is paid after delivering a specific service, with the reimbursement tied directly to the service performed. Each procedure or visit is billed separately (often with standardized codes), and payment depends on the particular service provided. This contrasts with capitation, where a clinician gets a fixed amount per enrolled patient regardless of how many services are delivered, which changes incentives. Collective bargaining involves negotiations between employers and unions over wages and benefits, not how physician services are reimbursed. A joint venture is a collaborative business arrangement for sharing ownership and profits, not a payment method for medical services. So describing payment after a service is rendered, based on the service performed, aligns with fee-for-service.