Final answer:
The main distinction between fee-for-service and HMO health systems is the payment model; fee-for-service charges for each service, while HMOs have set fees for comprehensive care. The U.S. system is predominantly fee-for-service, known for high quality and innovation but with cost control and access challenges.
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 care delivery structures. In a fee-for-service system, healthcare providers receive payment for each service, such as a doctor's visit, test, or procedure, which may encourage higher usage of medical services. In contrast, HMOs provide a comprehensive range of health services to enrolled members for a set periodic fee, emphasizing preventive care and cost control by using in-network providers and typically requiring referrals for specialists.
Efficiency and standardization methods like telemedicine, and artificial intelligence play a role in streamlining both systems. However, the challenge for any healthcare system is to find a balance between providing high-quality care and controlling costs while ensuring access to all. The U.S. healthcare system, predominantly fee-for-service, offers high-quality care and innovation but struggles with controlling costs and achieving universal coverage.