Fee-for-service is a standard business model where services are unbundled and paid for separately.
In Health insurance and the health care industry fee-for-service involves when doctors and other health care providers receive a fee for each service such as an office visit, test, procedure, or other health care service[1]. Fee-for-service health insurance plans typically allow patients to obtain care from doctors or hospitals of their choosing[1], but in return for this flexibility they may pay higher copayments or deductibles[2]. Patients frequently pay providers directly for services, then submit claims to their insurance company for reimbursement[2].
In Real Estate, the fee-for-service model of paying a broker provides an alternative to paying commission. In the fee-for service pricing model can a broker may charge for showing trips or other services [3].
References
- ^ a b FEHB Glossary. Retrieved May 31, 2006.
- ^ a b InvestorWords.com: "fee-for-service". Retrieved May 31, 2006.
- ^ ABout.com Real Estate Business definitions http://realestate.about.com/od/df/g/deffeeforsvc.htm
