Fee-for-Service (FFS)

Fee-for-Service (FFS) is a payment model commonly used in healthcare, where providers, like doctors and hospitals, are paid for each specific service or treatment they deliver. Under this system, healthcare professionals receive a fee for each visit, test, or procedure performed, rather than a set salary or per patient. This encourages providers to offer more services, as they earn more for each one. While FFS can lead to high-quality care through more treatment options, it may also result in unnecessary tests or services, potentially driving up healthcare costs.