Sample Nursing Essays on Healthcare Payment Systems

Healthcare Payment System

Comparison of Fee-For-Service and Value Based Reimbursement

Payment models of goods delivered or services rendered depends on the quality and satisfaction of the customer or the buyer. In healthcare systems, Fee-for-service payment and value-based reimbursement systems are payments models applied by healthcare providers to the services offered. Both systems ensure that healthcare providers are compensated on the services rendered as well as the patients receive medical care. These payments also encourage patient care delivery and are flexible to be applied in an organization of any structure (Saleh et al., 2016). These payment methods ensure that care providers can manage their costs as well as lower operation to ensure the quality of service.


Notably, Fee-for-service payment system is where payment depends on invoices rendered on the quantity of care rendered other than the quality rendered. It also aims rendered aims at increasing the financial incentive of the healthcare provider, regardless of whether the patient has received effective care or not. This system only favors the healthcare provider as doing more translates to earning more irrespective of the impact it has on the patient. As a result of this, while providers are compensated, the patients are exposed to receive duplicated and unnecessary services. Value-based reimbursement system on the other hand rewards financial incentive with the view to promote high patient satisfaction, quality outcome and elimination of services that are of low value to patients (Hubley et al., 20016).  Contrastingly, it ensures that the quality of patient care rendered is equivalent to the volume of the service offered (Porter et al. 2016).  Moreover, this system purposes at the overall wellbeing of the population other than on an individual benefit.  Additionally, health providers are engaged continuously with patient care even if they leave the medical facility as well as ensuring that providers are financially rewarded based on positive and efficient care delivery on the patient.



Hubley, S. H., & Miller, B. F. (2016). Implications of healthcare payment reform for clinical psychologists in medical settings. Journal of clinical psychology in medical settings23(1), 3-10.

Porter, M. E., & Kaplan, R. S. (2016). How to pay for health care. Harv Bus Rev94(7-8), 88-98.

Saleh, K. J., & Shaffer, W. O. (2016). Understanding value-based reimbursement models and trends in orthopaedic health policy: an introduction to the Medicare Access and CHIP Reauthorization Act (MACRA) of 2015. Journal of the American Academy of Orthopaedic Surgeons24(11), e136-e147.