What is the main difference between global payments and per service payments?

The main difference between global payments and per service payments lies in the scope of coverage provided by each payment method. Global payments encompass all related services delivered during a specified time frame, which means that a single payment is made to cover multiple services that are connected to a particular episode of care or treatment. This model encourages coordinated, comprehensive care, rather than compensating individual services separately.

In contrast, per service payments are designed to reimburse healthcare providers for each individual service or procedure performed, which does not account for the full continuum of care that a patient may receive over time. This approach can lead to fragmented treatment, as providers are incentivized to perform more services rather than coordinate care effectively.

Understanding this distinction is crucial for navigating reimbursement methodologies, as it influences both provider payment structures and the quality of care delivered to patients.