What is an important aspect of fee-for-service reimbursement?

Fee-for-service reimbursement operates on the principle of compensating providers for each individual service or procedure rendered to a patient. This model reflects the quantity of care provided, meaning that healthcare providers receive payment for every consultation, test, surgery, or treatment performed.

This approach can lead to an increase in the number of services delivered, as providers may have a financial incentive to recommend more tests or treatments to maximize their revenue. The focus is primarily on the volume of services rather than the overall quality or outcome of care, which is a key characteristic of the fee-for-service model.

While it is true that this system can lead to challenges such as potential overutilization of services, it fundamentally revolves around the laity of reimbursement tied directly to the specific services delivered. This is why the assertion regarding payment for every individual service provided aligns accurately with the principles of fee-for-service reimbursement.