21. Which of the following is a payment system for health care wherein the provider is paid for each service given?
Answer: D
Fee-for-service is a payment system for health care wherein the provider is paid for each service given.
In a fee-for-service payment system, healthcare providers receive a separate payment for each service performed, incentivizing them to offer more services.
A) Lump-sum payment.
Lump-sum payment refers to a single, fixed payment made for a service or a set of services, regardless of the number of services provided. This system does not compensate providers for each individual service, making it distinct from fee-for-service.
B) Prepaid basis.
Prepaid basis payment involves a fixed amount paid in advance for a set of services over a specific period, regardless of the number of services utilized. This model contrasts with fee-for-service, where payment is made for each individual service rendered.
C) Premium payment.
Premium payment typically refers to regular payments made for insurance coverage, not direct compensation to providers for services rendered. As such, it does not align with the concept of paying for each service individually, as seen in fee-for-service models.
D) Fee-for-service.
Fee-for-service is characterized by paying healthcare providers separately for each service they deliver. This payment model encourages the provision of more services, as providers are compensated for every procedure or treatment performed.
Conclusion
Fee-for-service is the only option that accurately describes a payment system where healthcare providers are paid for each service provided. Other options, such as lump-sum, prepaid basis, and premium payment, do not reflect the characteristics of a system that compensates on a per-service basis, thereby confirming the correctness of the fee-for-service model.