Payment Models in Healthcare

Payment Models in Healthcare
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Payment Models in Healthcare
The payment model determines how providers function; mode of payment, degree of spending, and pricing method. Traditionally, most healthcare providers use fees-for-services, Capitation, and episode-based payments models. Capitation is a payment model in which a doctor, a hospital, or a physician is reimbursed a fixed amount of money agreed upon in a given timeframe by an insurer or association. Notably, the doctors or physicians ( Primary Care Physicians, PCP) are paid a similar amount, regardless of whether the patient seeks medical service or not, based on patient enrollment. In addition, Capitation includes an initial payment of a flat fee, a determined number of patients, delivery of services in a set tim...