Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 16: Problem 16

What is the key difference between a fee-for-service healthcare system and a system based on health maintenance organizations?

Short Answer

Expert verified
The key difference between a fee-for-service healthcare system and a system based on health maintenance organizations (HMOs) is the payment model and focus on care provision. Fee-for-service systems pay providers for each individual service, with no emphasis on overall patient health, while HMOs charge a fixed monthly fee and focus on comprehensive, preventive care for their members.

Step by step solution

01

Understand Fee-for-Service Healthcare System

A fee-for-service healthcare system is a model where healthcare providers are paid for each individual service they perform for patients. This includes consultations, treatments, and procedures. Under this system, providers may choose the services they offer and the patient, or their insurance company, pays accordingly.
02

Understand Health Maintenance Organizations (HMOs)

A health maintenance organization (HMO) is a type of healthcare system that focuses on providing comprehensive care to its members through a network of physicians and healthcare facilities. The members pay a fixed monthly fee, and in return receive a wide range of medical services from their provider network. HMOs often emphasize preventive care to reduce the risk of costly treatments down the road.
03

Identify the Key Difference

The key difference between a fee-for-service healthcare system and a system based on health maintenance organizations (HMOs) lies in the payment model and the focus on care provision. In a fee-for-service system, providers are paid for each individual service performed, with no emphasis on the overall health of the patients. On the other hand, HMOs charge a fixed monthly fee and focus on providing comprehensive care with an emphasis on preventive measures for their members.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate the traits they are seeking in a new employee?

Why might it be difficult for a buyer and seller to agree on a price when imperfect information exists?

In an insurance system, would you expect each person to receive in benefits pretty much what they pay in premiums or is it just that the average benefits paid will equal the average premiums paid?

What are some ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whether the borrower will repay the loan?

What are some ways a seller of labor (that is, someone looking for a job) might reassure a possible employer who is faced with imperfect information?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free