Fee-for-Service is a payment model where healthcare providers charge separately for each service, procedure, or treatment provided to patients, with payment being dependent on the quantity of services rather than quality or outcomes.

Structure and Implementation
Under this model, every healthcare interaction is itemized and billed separately. This includes:

• Office visits
• Medical procedures
• Laboratory tests
• Imaging studies
• Other medical services

Impact and Consideration
This traditional payment model has significant implications for healthcare delivery:

• Tends to incentivize volume over value
• Can lead to unnecessary tests and procedures
• Often results in higher healthcare costs
• May fragment care coordination
• Creates complex billing processes