One page or less essay discussion

One page or less essay discussion

Explain how fee for service and capitation payment systems affect the physician’s role as the patient’s agent? Second, the move from cost-based payment for hospital services to payment on DRGs was expected to change hospital behavior. Discuss what you would have expected to observe as payment methods changed?

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Capitation and fee for service (FFS) are the most commonly used mode of payment in U.S healthcare services. In capitation, a set amount is paid to a doctor on every patient they attend while in fee for service payment is made according to the procedure used for treatment. Both of them have a significant impact on the physician’s roles (Gosden et al., 2000).

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