Medical Fee Payment Methods

Medical fee payment methods are not limited to fee-for-service and bundled payment. They can be classified according to what unit is used as the basis for payment.

Major methods include fee-for-service, in which each individual medical service is reimbursed separately, and bundled payment, in which multiple services are reimbursed together on a per-day or per-admission basis. Other methods include capitation, in which a fixed amount is paid per patient; global budgets, in which a fixed budget is allocated to a healthcare provider for a specified period; and performance-based payment, in which payment is linked to the quality or outcomes of care.

DPC/PDPS combines per-diem bundled payment with fee-for-service payment.