As many of you know and have pointed out in your responses, there are several types of reimbursement strategies such as fee for service (FFS), capitation, bundled payments, and global budgets to name a few.

As many of you know and have pointed out in your responses, there are several types of reimbursement strategies such as fee for service (FFS), capitation, bundled payments, and global budgets to name a few. Fee for service reimbursement is where providers are paid for the number of procedures performed regardless of outcomes. 

Capitation reimbursement is a form of payment a provider receives to cover all services for s specified population over a period. Adjustments to the capitation payment can be made based on patient demographics, where the patients live, and the patient’s health status. 

Capitation (fixed) reimbursement approaches allow providers to increase their revenue through an increased number of patients. Bundled payments are a single payment for a procedure such as knee replacement. 

A provide received on fee for all services relate to replacement surgery. Global budgets are a fixed annual fee paid to a provider such as a hospital for all services during a fiscal year. (Josh, 2022). 

Group, all of these strategies are currently in play in the US healthcare marketing for both for profit and not for profit organizations. Do you see one strategy that seems to make the most sense for future healthcare payments? Do you see a system that might be better for not for profits? Is one better for the for profit? Which payment do you think has the best chance of prevailing? Why?

Reference:

Josh, Axene (2022). Paying Healthcare Providers: The Impact of Provider Reimbursement on Overall Cost of Care and Treatment Decisions. https://axenehp.com/paying-healthcare-providers-impact-provider-reimbursement-overall-cost-care-treatment-decisions/