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Under which of the following organizations are the practicing providers compensated on a fee-for-service basis?

A) Health Maintenance Organization (HMO)
B) Preferred Provider Organization (PPO)
C) Point of Service (POS)
D) Exclusive Provider Organization (EPO)

User Enza
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Final answer:

The practicing providers are compensated on a fee-for-service basis typically under Preferred Provider Organizations (PPOs), in contrast to HMOs, EPOs, or POS plans, where providers receive set fees per patient or through other managed care models.

Step-by-step explanation:

Under which of the following organizations are the practicing providers compensated on a fee-for-service basis? The answer is Preferred Provider Organization (PPO). In a fee-for-service health financing system, medical care providers are reimbursed according to the services they provide. This contrasts with a health maintenance organization (HMO), which pays providers a fixed amount per patient, regardless of the number of services provided.

With HMO plans, providers are incentivized to offer care more efficiently because they receive a set fee per patient. Nevertheless, PPO plans offer more flexibility and typically operate on a fee-for-service model, where providers are paid based on each service they perform. Exclusive Provider Organization (EPO) and Point of Service (POS) plans are also types of managed care plans, but PPOs are the ones that most closely align with the fee-for-service model.

User George Edwards
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