Financial Flow in U.S. Health Care System Term Paper

Financial Flow in U.S. Health Care System
A discussion on the fee-for-service and capitation payment programs and their impact on a hospital's flow of finances.
# 153772 | 1,199 words | 5 sources | APA | 2013 | US
Published on Dec 16, 2013 in Medical and Health (General)

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This paper discusses how patients use different ways to finance their personal health care for dental services, hospitalization or any other medical services that are provided directly to the patient. The paper explains the difference between fee for service or capitation payment programs and looks at the financing of a health care center. The paper also discusses the difference between private and tax-funded health insurance and shows how the fee-for-service or capitation payment methods have a huge impact on a hospital's flow of finances.


From the Paper:

"According to Lave & Peele (2002), under the fee-for-service payment method, the Medical Service Provider receives payments on the basis of each of the services provided by them such as separate payments for X-ray, Dental Checkup and Blood Test. Mostly, Fee for Service plans cover service costs related to hospitalization, drugs, professional care such asDoctor Visits, and surgery etc. The payments in Fee-for-Service method are based either on the charges set by the Medical Professional or Third-Party fee schedules like Medicare in the U.S.
"On the other hand, Lave & Peele (2002) defined Capitation as paying the Medical Professionals using a defined, per-patient, periodic (usually monthly or yearly) basis for all the individuals covered under an insurance plan. This payment is made regardless of how much care might be provided, how the Patients require it or if they even avail the Medical Service or not. For example, under Capitation an insurance company might reserve one comprehensive service like a generalized Eyesight Checkup for numerous Patients. The payment in the Capitation payment method may vary in accordance with the Personal Characteristics such as Age of the Patient enrolled in the Insurance Plan."

Sample of Sources Used:

  • Bayley, C. & Gordon, E. J. (2004). "Hospital, Contemporary Ethical Problems Of The: An entry from Macmillan Reference". Encyclopedia of Bioethics.Vol. 3. pp. 1179-1184
  • Chua, K. P. (2006). "Overview of the U.S. Health Care System". Retrieved from
  • Darity, W. A. (2008). "National Health Insurance".International Encyclopedia of the Social Sciences. Vol. 5. 2nd ed. pp. 395-396. Retrieved from
  • Lave, J. R. & Peele, P. B. (2002). "Health Care Financing".Encyclopedia of Public Health.vol. 2. Retrieved from
  • Lerner, K. L. & Lerner, B. W. (2006)."Patient Rights and Responsibilities".Medicine, Health, and Bioethics: Essential Primary Sources. pp. 479-482

Cite this Term Paper:

APA Format

Financial Flow in U.S. Health Care System (2013, December 16) Retrieved December 08, 2021, from

MLA Format

"Financial Flow in U.S. Health Care System" 16 December 2013. Web. 08 December. 2021. <>