REIMBURSEMENT METHODOLOGIES

Reimbursement Methodologies

Reimbursement Methodologies

Fee-for-Service Reimbursement

Fee-for-service reimbursement is a healthcare payment method in which providers receive payment for each service rendered. Fee-for-service is a common method of calculating healthcare reimbursement.

A fee is a set amount or a set price. Fee-forservice means a specific payment is made for each specific service provided (“rendered”). (Averill et al, 1999) In the fee for-service method, the provider of the healthcare service (the second party) charges a fee for each type of service, and the health insurance company pays each fee for a covered service. These fees or prices are known as charges in healthcare. Sometimes, there ...