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Is the Fee-for-Service Physician Payment Model Doomed?

by Thomas R. Collins •

He also said it is crucial that physicians work together, even though that has not traditionally been a practice. “Individually, we’re all going to be like those little grocery stores on every corner in New York City that have really gone the way of the looney bird,” he said. “That’s why we’re under attack, because as much as we’re smart in this room, we don’t have the ability to negotiate as a smart group.”

Take-Home Points

  • The fee-for-service system has merits in that it is simple and easy to understand, promotes a work ethic, and gives physicians flexibility and choice in income and lifestyle.
  • “Outliers” who overbill are a problem that needs to be addressed.
  • Fixing the rising costs of healthcare is not just a matter of collecting more data.
  • Other payment models might encourage doctors to seek out the “good” patients at the expense of more costly patients.