Final answer:
The key difference between a fee-for-service healthcare system and an HMO system is the payment method and care model employed.
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 on a fee-for-service basis, which means they are paid for each specific service or procedure they provide. This often leads to a focus on quantity of services rather than quality.
On the other hand, an HMO system emphasizes preventive and coordinated care. Patients are usually required to choose a primary care physician (PCP) who manages their overall healthcare. PCPs in HMOs act as gatekeepers, coordinating all aspects of care and referring patients to specialists. This approach aims to provide comprehensive and cost-effective care.
In summary, the primary distinction between a fee-for-service healthcare system and an HMO system is the payment method and care model employed, with fee-for-service focusing on individual services and HMO emphasizing coordinated care.