What is the nature of traditional fee-for-service payments?

In a traditional fee-for-service payment model, healthcare providers are reimbursed for each individual service they deliver to patients. This model is characterized by payments being made after the services have been provided, which aligns with the choice indicating that payers and patients pay after services have been rendered.

In this system, healthcare organizations submit claims for the procedures and treatments performed, and those claims are then reviewed and reimbursed by insurance companies or government payers based on the services rendered. This structure incentivizes providers to offer more services, as their compensation is directly linked to the volume and type of care they deliver.

The other choices do not accurately reflect the fee-for-service model. For instance, payments made before services are rendered or patients being billed for all services in advance suggest a different billing approach, potentially aligning with prepaid or capitation models rather than traditional fee-for-service. Additionally, a subscription basis for payments implies a steady, recurring fee for access to services, which diverges from the traditional model’s emphasis on paying for each specific service completed.