How does the Fee for Service model typically affect physician behavior?

The Fee for Service model typically encourages the provision of more services because physicians are compensated separately for each service performed. This payment structure incentivizes providers to deliver a greater volume of services, as their revenue directly correlates with the number of procedures, tests, and visits rendered to patients. As a result, physicians may feel motivated to order additional tests, conduct follow-up visits, or recommend further treatments, regardless of the necessity for these services, simply because they will be compensated for each action taken.

This model contrasts with other payment structures, such as value-based care, which focus more on patient outcomes and quality of care rather than the quantity of services provided. In such models, the emphasis would be on ensuring patients receive appropriate and effective care, rather than maximizing the number of services offered. In the context of the Fee for Service model, however, the incentive to increase service volume is a defining characteristic that shapes physician behavior significantly.