What is the definition of 'fee for service' reimbursement?

The definition of 'fee for service' reimbursement accurately aligns with the concept reflected in option C, where a set amount is paid for each specific service rendered during a patient visit. This reimbursement model allows healthcare providers to charge separately for each service or procedure that they perform, meaning that providers receive payment based on the quantity and types of services utilized by patients rather than a fixed monthly or bundled payment.

In this model, providers have the potential to earn more as they offer additional services or treatments, as each one is billed individually. Consequently, the incentive structure is designed to reward the volume of care provided, promoting a direct correlation between the level of service delivered and the compensation received, thus fostering a more responsive approach to patient care.