Which reimbursement methodology utilizes a predetermined schedule of rates for services?

The reimbursement methodology that utilizes a predetermined schedule of rates for services is Fee-for-Service (FFS). In this model, healthcare providers are reimbursed for each individual service they perform based on a set rate established beforehand. This predetermined schedule outlines the payment amount for specific medical services, procedures, or visits, which allows for consistent billing and payment across providers.

The FFS approach is particularly advantageous for providers because it creates a direct incentive to offer more services, as each service performed translates to additional revenue. This model contrasts with other methodologies, such as capitation, which pays providers a fixed amount per patient regardless of the number of services rendered. In the case of pay-for-performance, payments are tied to the quality of care rather than a specific schedule of services. On the other hand, global budgeting allocates a total budget to a healthcare provider for all services over a specified period without linking reimbursement to individual services. Therefore, Fee-for-Service distinctly stands out for its reliance on a predetermined schedule of rates for individual services.