Which payment model focuses on paying providers based on the individual services they perform?

The payment model that emphasizes compensating providers for each individual service they perform is known as Fee-for-Service (FFS). This model allows healthcare providers to bill separately for each specific service or treatment delivered to patients, thereby incentivizing providers to offer more services rather than focusing solely on patient outcomes or overall care management.

In Fee-for-Service, the reimbursement amounts are typically predetermined by insurance contracts or Medicare/Medicaid guidelines for each type of service, which can range from office visits to surgeries. Therefore, under this model, the more services a provider renders, the higher their total reimbursement can be, potentially leading to increased quantity of care being provided regardless of the quality or patient necessity.

This stands in contrast to other models such as Value-Based Payment, which ties reimbursement to the quality and efficiency of care; Capitation, where providers receive a set fee per patient enrolled regardless of how many services are used; and Per-episode payment, which focuses on the total cost of care for a specific episode of treatment rather than on individual services. Each of these models aims to improve patient care and cost efficiency in different ways but does not prioritize individual service payment like Fee-for-Service does.