Final answer:
The distinction between fee-for-service healthcare systems and HMOs is the reimbursement method: fee-for-service compensates per service provided, while HMOs pay based on patient numbers, requiring efficient resource distribution. This impacts the financial strategies of healthcare organizations regarding revenue expectations and cost management.
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 reimbursement and resource allocation models. In a fee-for-service system, providers are reimbursed based on each service they render, directly tying revenue to the cost of services.
Conversely, HMOs reimburse providers based on the number of patients they manage, which requires providers to allocate resources efficiently amongst patients. These differing approaches have implications for the strategic financial planning of health care organizations, with revenue expectations and cost estimates playing crucial roles in sustainability and accessibility of care. However, it's important to note that cost estimates are still crucial in evaluating the feasibility and sustainability of a plan. Organizations need to carefully consider the financial implications and ensure that the expected revenues will indeed offset the costs in a reasonable timeframe.