Here is a little story! Dr. Sarah Chen - an expert working for years sighed as she reviewed her patient's chart. Mr. Johnson's diabetes was poorly controlled. Due to this, there were frequent hospitalizations in the past few months. She knew he needed more support between visits. Unfortunately, the fee-for-service model didn’t permit that. Naturally, there had to be a better method to care for clients like Mr. Johnson without jeopardizing the clinic's financial stability.
Fee-for-service (FFS) is straightforward in its mode of action. ‘Service providers get incentivized for each service they deliver, regardless of the outcome’. Although this system guarantees payment for services completed, it has several noteworthy shortcomings:
It incentivizes quantity over quality
There's little focus on preventive care
It can lead to unnecessary tests and procedures
It doesn't reward coordination among healthcare providers

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