What is fee for services reimbursement?

Fee-for-services reimbursement is a payment model where health care providers are compensated for each individual service they deliver to patients. In this model, the provider establishes their own charges for the services rendered, and each service is then billed separately. This means that for every individual treatment, consultation, or procedure provided, a corresponding charge is submitted for reimbursement. This allows providers to receive payment based on the volume of services provided, which can incentivize them to deliver more care if necessary.

This model contrasts with other reimbursement methods, such as global payments or bundled payments, where a set amount is paid for multiple services or treatments, rather than billing for each service individually.