What type of reimbursement is characterized by payments made for each episode of care?

The concept of reimbursement characterized by payments made for each episode of care aligns most closely with a fee-for-service model. In this model, healthcare providers receive payment for each individual service rendered to a patient. This approach incentivizes providers to deliver more services, as their payment is directly tied to the volume of care provided.

Capitated payment, on the other hand, involves a fixed amount of money paid to a provider to cover a defined set of services for a patient over a specified time frame, regardless of the number of services delivered. This model emphasizes managing care for a population rather than billing for each individual service.

Understanding the distinction between fee-for-service and capitated payment is crucial in grasping how payment systems influence healthcare delivery and provider behavior. Fee-for-service models can lead to increased service utilization, while capitated payment emphasizes cost control and efficient resource use.