Fee-for-service (FFS) is a traditional payment model which is still broadly being used across the US. Under this payment system, healthcare providers and physicians receive payment for the number of service provided. The payment is done either by individuals, government agencies or insurance companies. For every test, surgical consultation, hospital stay, treatment and procedure, the provider is paid individually for each service and not altogether.
Medicare also has a Fee-for-service program that offers insurance in two parts. First part consists of hospital insurance which covers hospital or nursing facility admission cost, surgical procedures, hospitalization, home healthcare, and tests. And the second part is the supplementary medical insurance that offers coverage of services provided by physicians, medical equipment, outpatient care and other preventive care services.
