Compared with doctors who are paid on a fee-for-service basis by health insurers, doctors who are paid on a capitated (per patient) basis have incentives to provide too much care. True False

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter6: Population Health
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Compared with doctors who are paid on a fee-for-service basis by health insurers,
doctors who are paid on a capitated (per patient) basis have incentives to provide too
much care.
True
False
Transcribed Image Text:Compared with doctors who are paid on a fee-for-service basis by health insurers, doctors who are paid on a capitated (per patient) basis have incentives to provide too much care. True False
Expert Solution
Step 1

In the healthcare system, fee-for-service refers to the payment method in which physicians get a fixed amount of income for their contribution. In contrast, capitated basis of payment is based on per patient payment. 

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