Question

Why do HMOs prefer the prepaid, monthly premium? Is pay-for-performance a better model than existing models...

Why do HMOs prefer the prepaid, monthly premium? Is pay-for-performance a better model than existing models of compensation? Are there limitations to it as well?

Homework Answers

Answer #1

The advance monthly premium makes services available easily especially in clinic settings and encourages one to come in soon to prevent a minor condition from it escalating.

I believe the pay for performance model is a better model for payment than the existing ones as the model can be viewed as a refinement of the fee for services and capitation reimbursement models. The model is limited in terms of outcome measurement as results such as clinical outcomes are difficult to measure.

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