Skip to main content

Feature-ValueBasedPayment-1.png

Historically, the U.S. health care system has had different payment methodologies, depending on the care setting. Hospitals, skilled nursing facilities, and home health agencies typically have been paid under a prospective payment system model, while outpatient care typically has been reimbursed on a fee-for-service or discounted fee-for-service basis.

FFS, which has been used for decades, directs health care insurers to pay health care professionals for each intervention provided to the patient. (Discounted FFS, typically within managed care arrangements, calls for discounts on regular FFS fees when patients use in-network providers.) Critics of FFS — as described in the June 5, 2014, Forbes article "More Health Care Is Better Health Care: Myth or Reality?" — long have argued that it incentivizes health care professionals to provide and bill for the highest number of health care services per patient during each visit, even if the need for such services is not indicated.

Log in or create a free account to keep reading.


Join APTA to get unlimited access to content.


You Might Also Like...

Open Access

Directory of Postdoctoral Programs

Feb 12, 2026

The postdoctoral programs listed provide opportunities for research and education post academic doctoral degree (ie, PhD) for PTs.

Open Access

Directory of Postprofessional PhD and ScD/DSc Programs

Feb 12, 2026

The programs listed provide only postprofessional doctoral (i.e., PhD, ScD) graduate educational and research opportunities for PTs. The degrees offered

Open Access

Directory of Transition DPT Programs

Feb 12, 2026

The following list includes the names of higher education institutions that offer a postprofessional DPT (Transition) program for physical therapists licensed