Provider Network: The managed health care backbone is the network provider which is inclusive of physician’s contract, hospitality services and systems of health along with the professionals which are non physician, ancillary and services of therapeutic with facilities and all other care providers. The existence of a contract allows the payers and the providers to have general health insurance indemnity type.
Advantages: Payment through fee for services constitutes of reimbursing for particular services of individuals delivered for a patient. It is fairly simple for being understtod through fee for service as a method of payment as every particular service is delivered through bills and can be provided payment as well. As a simple form however, payment of fee for service within health care institutes differs from goods or services payments in all economic sectors where pricing is done. The process has relative flexibility and disregards the sizes or structure of organizations structures within the practice of physician.
Cons: Conceptually fee for service can be simple for being understood but there is a difficulty present for understanding the same in practical implementations. Patients sometimes struggle for deciphering the coded values and involved nomenclatures within the process of billing and therefore managing the various bills becomes very difficult.
There are different types of hospital payment methodologies which have been reviewed in the form of models of payment. These are fee for services, coordination pay, performance pay, payment through episodes or through bundles and care of comprehensiveness or complete payment through care cost.