Fee-for-service payments create incentives

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Many observers claim that “fee-for-service” payments create incentives for physician to employ higher-cost treatments. Is this an intrinsic feature of FFS payment systems? If so, explain why. If not, what is the correct way to view the financial incentives FFS payment systems create for physicians choosing among different treatment options.

Reference no: EM13899145

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Fee-for-service payments create incentives : Many observers claim that “fee-for-service” payments create incentives for physician to employ higher-cost treatments. Is this an intrinsic feature of FFS payment systems? If so, explain why. If not, what is the correct way to view the financial ince..

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