Fee-for-Service is defined as:

• A. A payment system where providers are paid for each service they perform.
• B. A set monthly payment per patient.
• C. A global bundled payment for a treatment.
• D. A grant-based reimbursement model.

Answer: (A)

The idea being tested is a payment model in which clinicians are paid for each individual service they provide. This means every visit, test, or procedure is billed separately, so more services can lead to more reimbursement. That alignment is what makes fee-for-service the best description.

Understanding this helps distinguish it from other payment approaches. A fixed monthly payment per patient describes capitation, where providers receive a set amount for each enrolled patient regardless of how many services are used. A global bundled payment covers a group of services for a specific episode of care with one payment. A grant-based reimbursement comes from external funding like research or program grants rather than standard clinical billing.