Table of Contents
The people related to the medical field are usually aware of the fee for service models and value-based care that’s why they can easily differentiate between value-based care vs fee for service. Usually, fee for service is a method where the patient needs to pay for every healthcare service he gets from the provider. But this model has gained a lot of criticism because it forces the providers to focus on quality instead of care’s quality. On the other hand, value-based care focuses on the quality of care provided to the patient by the provider.
This guide provides you with detailed information about both types of services where one focuses on quality and the other focuses on the quality of healthcare services provided to the patient. The goal of both the services is different. In this guide, you will get to know the advantages and disadvantages of both the services in healthcare organizations such as hospitals. Different activities are included in each type of service where there is also the difference of costs among them.
Value-based care can be defined as a healthcare program that majorly focuses on the quality of health care provided to the patient instead of focusing on the number of provider visits. The goal of this service is to make sure that there is less cost of healthcare and the overall health of the people could be improved efficiently. It also aims to provide better health care to people.
This type of healthcare service is based on different factors such as the efficiency of costs, outcomes after treatment, and patient satisfaction. No doubt, it is a qualitative approach in which the healthcare providers or the doctors are paid based on outcomes.
Following are some of the benefits offered by value-based care in healthcare centers:
- It incentivizes the healthcare providers to lower the unnecessary costs
- The providers focus on the quality of care provided to the patient to increase the satisfaction level of the patient.
- The high satisfaction level of the patients results in helping the providers to compete with their competitors in the healthcare sector.
- The patients are sustained by a more synchronized healthcare team.
- Patient engagement and quality of care increase when the focus is on value instead of volume
- Suppliers can get the advantage for supporting their services and products with positive results for the patients.
Following are some of the disadvantages associated with value-based care:
- This type of healthcare service results in a lack of transparency in data and irregularity in reporting models.
- It is difficult for healthcare organizations that lack data managing skills to reach value-based care objectives that could result in ending up in hefty penalties.
- The increased load of the patients can make the physicians and providers responsible for the wellness issues
Following are some models included in value-based care:
- Accountable Care Organization
- Payment for Coordination
- Patient-centered Medical Home
- Bundled Payment
- Pay for Performance
- Medicare Quality Incentive Program
Fee For Service
The description of the fee for service model lets you differentiate value-based care VS fee for service easily. According to the fee-for-service model, the providers are compensated for each treatment, test, and procedure they perform regardless of whether that treatment, procedure, or test results in a better outcome for the patient.
With the help of this model, the healthcare providers are rewarded financially for quantity instead of quality. With this method, it becomes easy to check how the patients can sometimes undergo unnecessary treatments or tests that are of lower costs and are effective at the same time.
Following are some of the common benefits offered by the fee for service model in the healthcare sector:
- Patients can receive access to the exact healthcare services that are needed by them
- The patients can have full access to different care options and then pay for those services accordingly
- The patients have the right to decide what kind of treatment they want to get
- The patients can also change the doctor if they do not like their doctor; it means the patients are provided with their required doctor and healthcare services.
- The patients are provided with an unlimited choice of non-experimental treatments
- This model can result in encouraging the maximum number of patient visits.
Following are some disadvantages of fee for service model:
- It can result in the denial of care for some patients especially when they do not have healthcare insurance.
- The patients are provided with the healthcare services according to their budget due to which some patients may not receive proper treatment.
- Health insurance is more expensive than any coverage plan
- The patients need to undergo a lot of paperwork for managing the fee-for-service method.
- It can result in reducing the number of face-to-face visits
- The healthcare providers are not accountable for anything
Value-based Care VS Fee for Service
The best way to understand the difference of fee for service vs value-based care, you need to evaluate the plus points and negative factors of both models. It not only helps you to differentiate among them but also helps you to determine which one is best and suitable for you.
You should know that the value-based care method is related to the patient outcomes where the healthcare providers such as doctors focus on providing the patients with a higher level of satisfaction, fewer medical errors, lower readmission rates, and quicker recoveries.
On the other hand, the healthcare providers are rewarded in the fee-for-service method because the patients are provided with their required and desired healthcare services. In this method, the physician, doctor, or any other healthcare provider does not spend enough time with each patient and possibly orders more procedures, treatments, and tests. So, it may result in lowering the quality of healthcare being provided to the patient.
- What is the major difference between fee-for-service and value-based care?
The major difference between the fee for service and value-based care is that value-based care focuses on the quality of care whereas the fee for service is based on quantity.
- Which method makes the billing process easier?
Fee for service model makes the billing process easier because the provider charges the patient according to the services provided to the patients.
- Which method is the most effective one?
The value-based care method is the most effective one because the providers focus on the quality of care and when the patients are provided with efficient and high-quality care services, they are more satisfied with the provider and recover rapidly.
- Which method makes the provider accountable?
The value-based care method makes the provider accountable for the services he provides.
- Which method is the ideal one and is expected to be useful in the future?
The value-based care method is the ideal one and it is expected that it will replace the fee of service method in the healthcare sector.
People concerned about knowing the difference between value-based care vs fee for service should know that the major difference among these two healthcare models is the difference in quality and quantity. Value-based care focuses on the quality of the care provided to the patient that’s why the provider is responsible for the outcomes of such services.
On the other hand, the fee of service focuses on the quantity of the care services. The patients are provided with healthcare services according to their needs, requirements, desires, and budget. The provider is not responsible for the outcomes of the care services. No doubt, value-based care promotes the improvement of healthcare policies.
I am an Ambitious girl with a special interest in writing and sharing my knowledge. I love to hangout with nature and learn from it. My words will display the power of nature to the best as I love to write about the environment.