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Explain the difference between a per diem payment system and a prospective payment system.

User LarsC
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Final answer:

In a fee-for-service healthcare system, reimbursement is based on the cost of services provided, while in an HMO system, reimbursement is based on the number of patients a provider handles.

Step-by-step explanation:

In a fee-for-service healthcare system, medical care providers receive reimbursement based on the cost of services they provide. This means that the more services they provide, the more money they can earn. On the other hand, in a system based on health maintenance organizations (HMOs), medical care providers receive reimbursement based on the number of patients they handle. This creates an incentive for providers to focus on managing a larger number of patients instead of solely providing services.

User Ruslan  Ismagilov
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