Question

What is the range of forces and values in a fee-for-service business model that might diminish or conflict with a value-based model?

Answer 1

The fee for service model is where a fee either voluntary or mandatory is charged against the service. This model is helpful in getting revenue so that business keep going. On the other hand, the value-based model attracts fee-based on the quality of value of service provided. Taking the example of healthcare, in a value-based model the fee will be given based on the health care outcomes, whereas in fee for service model it will be the amount of health service delivered.

Fee for service model conflicts with the value-based model in terms of revenue generation. There may be expensive services provided with logistical cost but less utility. Here fee for service model is useful. The forces range from financial, behavioural, to logistical.