Final answer:
Charge Based Payment is the method that incentivizes health care providers to increase the volume of services rendered to maximize reimbursement. Each additional service translates into additional charges, thus directly tying payment to service volume.
Step-by-step explanation:
The third party payment method that creates an incentive for providers to increase volume (utilization) is a) Charge Based Payment. This method allows medical care providers to receive reimbursement on the basis of each service they provide to a patient. As a result, providers are more likely to deliver more services to maximize their earnings, as each additional service translates into additional charges.
Unlike Cost Based Payment, which reimburses providers for the costs incurred in delivering a service, or Diagnosis Related Group (DRG) Based Payment, which reimburses a fixed fee for a diagnosed condition regardless of the number of services used, Charge-Based Payment directly ties the payment to the volume of services rendered.
In contrast, RVU Based Payment provides reimbursement based on the Relative Value Unit, a measure accounting for the value of services provided, but not necessarily incentivizing high volume.