ABSTRACT
Preliminary Comments Fee schedule payment systems and prospective payment systems (PPSs) are addressed in the second and third books in the Healthcare Payment Systems series. We now address a number of other types of payment systems, including cost-based and charge-based payment. In actual practice, third-party payers tend to integrate multiple approaches for healthcare payment. These different payment mechanisms are included in various contracts that are established between the third-party payer and the healthcare providers. As with previous payment systems that we have addressed, these are classified fee-for-service payment; that is, payment is made based on the services provided. Fee for service means the greater the volume and complexity of services, the greater the payment on the part of the healthcare payer.
