TREATMENT COSTS
Fee-for-service medical model outdated for best patient care
SA healthcare’s fee-for-service model does not make for a long-term, holistic approach. There's an alternative, writes Ernst Marais
Medical science is evolving faster than ever before, so it is logical to become more innovative in payment for healthcare. In SA, where cash-strapped consumers are being squeezed by a sluggish economy and rising healthcare costs, the need to find alternative payment models that could achieve better patient outcomes without spending more money is becoming urgent. SA relies heavily on the fee-for-service model, in which healthcare providers are paid for their services. While it is the model for the provision of services in most industries, in healthcare it does not make for a long-term, holistic approach to managing health. As healthcare analyst Bob Berenson points out in The Journal of General Internal Medicine: "Fee-for-service, the predominant physician payment scheme, has contributed to the continuing decline in the primary care workforce and the capability to serve patients well." The model has become unsustainable. Providers must be incentivised to achieve better health outcomes...
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