Fee-for-service certainly has its advantages but these are outweighed by the disadvantages it has on the health care sector. Fee-for-service is renowned for its simplicity and its high use of hospital services. Patients have access to immediate care and unknown to them; this payment model is outcomes driven. Compared to the other reimbursement models, fee-for-service does not discourage unnecessary services in an episode. Contrary to that, physicians are encouraged to provide unnecessary services by the use of incentives. Fee-for-service also does not encourage the provision of high quality services.
