An insurance that will pay the health care organization for services each time the service is rendered is referred to as Fee-for-service (FFS).
Fee-for-service (FFS) is a payment model in which the patient or an insurance company is responsible for paying whatever amount the healthcare organization charges for their service. Thus, that will be paid each time the service is rendered
In health care, this service gives an incentive for physicians to provide more treatments because the payment is dependent on the quantity of care, rather than quality of care.
Hence, Fee-for-service (FFS) is potentially inflationary by raising health care costs.
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