Medical Assistant Roles And Responsibilities Practice Test

What is a risk associated with the fee-for-service model?

It can lead to unnecessary tests or procedures, increasing costs. It guarantees lower overall costs. It reduces the number of services ordered. It stabilizes pricing.

Correct Answer:

It can lead to unnecessary tests or procedures, increasing costs.

Explanation:

In a fee-for-service setup, providers are paid for each individual test or procedure they perform. That payment structure creates a strong incentive to order more services, because each one adds to revenue regardless of whether it’s strictly necessary. The main risk here is overtreatment: patients may undergo unnecessary testing or procedures, which increases overall costs for both the patient and the health system and can expose patients to avoidable risks. This model does not guarantee lower costs; in fact, costs tend to rise with higher volumes of services. It also doesn’t inherently reduce the number of services or stabilize pricing, since charges can vary and are driven by the number of billable services rather than by value or outcomes.

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