Which term refers to payment after service performed by a payer?

Which term refers to payment after service performed by a payer?

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

Answer: (C)

Fee-for-service is a reimbursement model where payment is made for each individual service after it’s delivered. The provider submits a claim for the specific services performed, and the payer reimburses based on those billed services. This means care is paid for in a step-by-step way, tied directly to what was actually provided. In contrast, capitation pays a fixed amount per patient per period, regardless of how many services are used, shifting some financial risk to the provider. Collective bargaining involves negotiating wages and terms of employment, not paying for medical services. A joint venture is a business collaboration between entities to share investment and profits, not a payer-based service-by-service payment method. So the term that matches “payment after service performed by a payer” is fee-for-service.

Fee-for-service is a reimbursement model where payment is made for each individual service after it’s delivered. The provider submits a claim for the specific services performed, and the payer reimburses based on those billed services. This means care is paid for in a step-by-step way, tied directly to what was actually provided.

In contrast, capitation pays a fixed amount per patient per period, regardless of how many services are used, shifting some financial risk to the provider. Collective bargaining involves negotiating wages and terms of employment, not paying for medical services. A joint venture is a business collaboration between entities to share investment and profits, not a payer-based service-by-service payment method.

So the term that matches “payment after service performed by a payer” is fee-for-service.