A system of payment for healthcare services whereby the provider charges a specific fee for each service rendered and is paid that fee by the patient or by the patient's insurance carrier is called:
A) capitation.
B) fee-for-service.
C) discounted fee-for-service.
D) prospective payment system (PPS).

Question

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Fee-for-service is a payment model in which healthcare providers receive a specific fee for each service they provide. This fee is usually negotiated in advance between the provider and the patient's insurance carrier. Under this system, patients are free to choose their healthcare providers and the services they receive, and providers are compensated for each service rendered. This is the most common payment model used in healthcare today.

A System of Payment for Healthcare Services Whereby the Provider