CEFR C1

fee-for-service

noun

Meaning

A healthcare payment model where providers receive reimbursement based on the quantity of services they deliver, rather than the quality or outcomes.

Examples

  • The hospital is transitioning from a global budget to a fee-for-service model.
  • Critics argue that fee-for-service incentivizes doctors to perform more procedures, even if they are not strictly necessary.

Synonyms: payment per procedure, pay-per-service, piecework