Final answer:
In a fee-for-service system, providers are reimbursed based on the cost of services, while in an HMO system, providers are reimbursed based on patient volume. HMOs focus more on support and preventive care to manage overall health.
Step-by-step explanation:
In a fee-for-service health financing system, medical care providers receive reimbursement according to the cost of services they provide. On the other hand, a system based on health maintenance organizations (HMOs) reimburses medical care providers based on the number of patients they handle. HMOs focus more on support than direct care, as their goal is to promote preventive care and manage the overall health of their enrolled population.
For example, in a fee-for-service system, a patient might visit different specialists for separate health issues, and each specialist will bill separately for the services provided. In an HMO system, the focus is on coordinating care and managing overall health, which might involve primary care physicians acting as gatekeepers who refer patients to specialists when necessary. HMOs often emphasize preventive care, such as regular check-ups and screenings, to maintain the health of their patient population and avoid costly treatments in the long run.