In health care reimbursement, which model is described by payment for each discrete service provided?

• A. Fee-for-service
• B. Capitation
• C. Salary-based
• D. Prospective payment

Answer: (A)

Paying for each discrete service delivered is the fee-for-service model. In this approach, reimbursement is tied directly to every individual item billed—each office visit, test, imaging study, or procedure—so total payment increases with the number and type of services provided. This makes the payment flow closely reflect the actual care delivered, but it can also create incentives for higher service volume and more documentation. By comparison, capitation reimburses a fixed amount per patient per period, regardless of services used, shifting some financial risk to the provider; salary-based reimbursement uses a fixed regular payment regardless of services rendered; and prospective payment assigns a fixed amount for an episode or diagnosis, not tied to the exact number of services. Since the model described is defined by payment for each service, fee-for-service is the correct fit.