Final answer:
The key difference between a fee-for-service healthcare system and a system based on health maintenance organizations (HMOs) lies in the payment and delivery of healthcare services.
Step-by-step explanation:
The key difference between a fee-for-service healthcare system and a system based on health maintenance organizations (HMOs) lies in the payment and delivery of healthcare services. In a fee-for-service system, healthcare providers are reimbursed for each individual service or procedure they perform. This means that patients have more freedom to choose their healthcare providers and receive a wider range of services, but it can also lead to higher costs and overutilization of services.
On the other hand, a system based on HMOs emphasizes preventive care and managing the overall health of a population. Healthcare providers in an HMO are typically paid a fixed amount per patient, regardless of the services provided. This approach encourages coordinated and efficient care, but it may limit patients' choices and access to certain specialists or services that are not within the HMO network.
In summary, a fee-for-service system focuses on individual services and provides more choice, while an HMO system prioritizes preventive care and population health management with a more limited provider network.