What are the two common billing methods used in physician office?

The two common billing methods used in physician offices are fee-for-service (FFS) and capitation. Fee-for-service involves billing patients or their insurers for each individual service provided, incentivizing the volume of care delivered. In contrast, capitation involves a fixed payment per patient per period, regardless of the number of services rendered, which encourages efficiency in care management. Each method has its advantages and challenges, impacting both revenue and patient care.