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Research Report News Podcast: Fee-for-Service Dominates in the U.S.

A recent study found that close to 95% of medical provider visits were paid with fee-for-service payments in 2013. This was an increase of more than 1% since 2010. The rest of the payments were paid with capitation, meaning the provider received a fixed monthly payment for each patient, regardless of the service they provided.

This information is important in regards to the political debate about payment reform. Many politicians equate successful payment reform with doing away with fee-for-service, especially with the Affordable Care Act’s intent to use innovative payment mechanisms for more efficiently delivered care. Medicare reimbursements, for example, are moving away from fee-for-service and toward accountable care organizations.

These findings were published in Health Affairs on March 7, 2016.

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