Question

Subject health Policy.

Explain each mode of physician reimbursement. Fee for service, episode of illness, capitation, and salary

Explain

Answer 1

Fee for Service is a type of payment model which gives incentive for physicians who gives more treatment .Fees are scheduled based on the quantity rather than on quality.Payments are are made only after the end of the treatment.In this service the health care provider charge for each office visit and test or procedure.In mostcases fee for service is a hinderance to provide co-ordinated care.

Episode of illness is a series of events occuring in the critical period.In Medicare episodes of illness do not involve post-hospital skilled nursing facility or home health agency.Episodes of ill ness which uses only hospital care are cheaper .There 4 types of episodes such as episodes involving only inpatient hospital care,episodes involving hospital and SNF care,episodes involving hospital and HHA care and episodes involving hospital,SNF and HHA care.This kind of approach is importat in the study of Medicare beneficiaries.

Capitation is a payment arrangementfor health care providers such as physicians or nurse practicioners.In this an amount is fixed beforehand to the physician for each enrolled patient.They only need to provide care for HMO enrolled patients.

Salary is often linked with employee compensation and is usually quted on a yearly basis.it is often recorded on in payroll accounts.it is a fixed amount of money and is given as a compensation for the employee for performing work within the stipulated time.