Which of the Following Is a Disadvantage to Fee-For-Service Reimbursement

question 8

Multiple Choice

Which of the following is a disadvantage to fee-for-service reimbursement?

• A) Providers are reimbursed one lump sum for continuous care.
• B) Providers are incentivized to promote volume over value.
• C) Providers have less flexibility in the services they provide.
• D) Providers are at greater risk of nonpayment for services.

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Definitions:

Improvement In Technology

Enhancements or advancements in technology that increase productivity or efficiency, often leading to economic growth.

Annuity Due

An annuity for which the payments are made at the beginning of each period, as opposed to the end in a regular annuity.

Ordinary Annuity

A series of equal payments made at regular intervals, with the distinguishing characteristic that payments are made at the end of each period.

Present Value

Today's value of money or cash flows to be received in the future, determined by applying a given rate of return.