One Difference Between a Fee-For-Service (FFS) Reimbursement Arrangement and Capitation

question 148

Multiple Choice

One difference between a fee-for-service (FFS) reimbursement arrangement and capitation is that the FFS arrangement:

• A) Is a prospective payment system, whereas capitation is a retrospective payment system
• B) Has a potential to induce providers to underutilize medical resources, whereas capitation does  71 not have this potential disadvantage
• C) Bases the amount of reimbursement on the actual medical services delivered, whereas reimbursement under capitation is independent of the actual volume and cost of services provided
• D) Is most often used by health plans to reimburse healthcare facilities, whereas capitation is most often used by health plans to reimburse specialty care providers

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Definitions:

Independent

A condition where two events have no influence on each other, making their occurrences or outcomes entirely unrelated.

Seat Belts

Safety straps installed in vehicles designed to secure passengers during a collision, reducing the risk of injury or death.

Probability

A measure of the likelihood that a specific event will occur, often expressed as a number between 0 and 1.

Random

Manifesting without any discernible pattern or strategy, happening randomly.