Ethical and economic failures of fee for service

I think most of us realize there is change afoot. While I think traditional fee-for-service billing will remain with us in to the future, there will be new reimbursement models. Is capitation goint to rear its ugly head again? Who knows. What we do know is that there are problems with the fee-for-service model that need to be fixed. Here are a few of the problems with it:

– Rewards overutilization
– Undervalues quality
– Ignores care coordination
– Creates an unsustainable trend

As I see it, instead of payers forcing new reimbursement models down the collective throats of physicians, there must be collaboration between payers and providers. We must make the future of healthcare reimbursement a win-win for all parties concerned, ultimately with outcomes that manages future healthcare costs and produces quality care.

What are your thoughts?

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.