1. Physicians are paid for their services to patients. The type
of payment may depend on the geographical area they practice. There
are different types of payment methods for physicians, which
include Salary, Fee-for-service and capitation.
2. The hospitals have different payment methods (Both public and
private sector). The hospital services are paid by the patients who
receive the services. The payment types are: Capitation (Hospital
is paid a fixed sum for the services offered over a period of
time), Per-diem (A fixed charge is collected for bed/day), Case
based (A fixed sum for every case/admission is collected), Global
budget (A fixed sum for a specific period for a specified
population for specified services is collected)
3. In the payment type for physicians, the one that could lead
to unnecessary practice is Fee for service. In this method the
physician receives the remuneration based on the number of services
provided or cases seen. This leads to high quantity of health care
services and not focus on patient satisfaction.