What are key financial models in health care delivery?

The selection of fee-for-service, capitation, and bundled payments as key financial models in health care delivery is appropriate because these models represent fundamental ways in which health care services are reimbursed and financed.

Fee-for-service is a traditional payment model where providers are paid for each individual service they deliver. This approach incentivizes providers to offer more services, as their earnings increase with the number of procedures performed. It gives patients the freedom to choose their providers and services, which can lead to greater choice in the health care system.

Capitation, on the other hand, involves a fixed payment per patient for a specified period, regardless of how many services the patient uses. This model encourages providers to focus on preventative care and the efficient management of resources, as their revenue is stable and not tied directly to the volume of services rendered.

Bundled payments are another innovative model where a single payment is made for a group of related services, typically around a specific episode of care (like joint replacement surgery). This model aims to improve care coordination and reduce overall costs while maintaining quality of care.

Other options, such as discussing only non-profit funding models or public health initiatives, do not cover the breadth of financial models in health care delivery. These may represent specific aspects or components