The current and predominant model for providing medical care in the United
States. Under a fee-for-service approach, physicians, hospitals, and medical
care providers in general are paid/reimbursed based upon the nature and
especially the volume of services they provide to a given patient.
The fee-for-services model contrasts with the value-based care model, in
which physicians and hospitals are compensated based on achieving positive
results (e.g., achieving a reduction in both initial hospital admissions and
hospital readmissions for chronic conditions, improving the overall health of
patients and maintaining that improvement over time), rather than on the sheer
quantity of medical services they provide.
The major criticisms of the fee-for-service model are that it offers no
incentive for either controlling the cost of medical care or improving overall
patient health.