Fee for service

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. Fee-for-service health insurance plans typically allow patients to obtain care from doctors or hospitals of their choosing, but in return for this flexibility they may pay higher copayments or deductibles. Patients frequently pay providers directly for services, then submit claims to their insurance company for reimbursement.