A payment mechanism whereby a provider or health care organization receives a payment each time a reimbursable service is provided (e.g., office visit, surgical procedure, diagnostic test, etc.).
Refers to a method of reimbursing the provider: the provider is paid for each separate service to a patient according to a list of fees.
European Observatory on Health Systems and Policies. Glossary. 2009.
A payment per item of service provided.
This is a common feature of some health insurance systems. It can have the drawback that it encourages high volumes of service provision which may be unrelated to the benefits derived from them. In some cases when the budget is drained, either the level of fees for each item of service is reduced, or the service facility is closed.