Definition: Fee for service is the term used for how doctors get paid. For each service the doctor performs they get paid a fee. Fee for service health care procedures include such items as a surgery procedure, test, or an office visit.
The fee for service health care model has been criticized and health care reform advocates feel that there needs to be fee for service reform. Critics feel that the fee for service model encourages waste and extra expenses for health care. Instead fee for service, critics feel that fee for service reform is needed and instead medical professionals should get paid based more on high quality and efficient care.
Examples: Maria visited the doctor for a nagging cough. The doctor decided to perform a number of tests to determine how to best treat Maria. The doctor received an individual payment for each of the tests he performed.
