Question

Explain the differences between fee for service and pay for performance? Include why you think some health providers resistant to one or the other?

(b) Who stands to benefit from pay for performance approaches in health service delivery? Explain your position.  

Answer 1

1) fee for service is the amount paid to service provider for specific work , completed at the your request, for your benefit. Fee for performance means performance based pay program where employee or service provider is rewarded for achieving goals and objectives. Pay for service model is a means of incentivizing doctors to improve performance and patient outcomes , while fee for service Health care provider are paid for service provided not minding if it's quality or not. Health care insurance companies do adopt this method. Why Health care provider are resistance to one or the other? Fee for performance is a new model which enable the health care provider improve performance and patient s outcomes and the health care provider is rewarded for quality care they provide at lower Health care cost is abetter compare to fee for service where health care provider receives fee for service provided to patient, patient outcome for the service provided are in no way related to fee paid. B) Those who benefit in pay for performance approach are the doctors, Health care worker, employee and patient. Reason: The health care provider are been rewarded for delivering quality care to the patient.