Under which payment model do providers receive payment for specific services rendered based on charges?

The correct choice focuses on the fee-for-service model, which is defined by how providers are reimbursed for the healthcare services they deliver. In this model, providers receive payment for each individual service or procedure they perform. This can include consultations, tests, surgeries, and other medical interventions, all billed separately based on the established charges for those specific services.

This structure creates an incentive for healthcare providers to offer and perform more services, as their revenue is directly linked to the volume of services provided rather than the patient outcomes or overall cost management. Fee-for-service is straightforward in terms of billing, allowing providers to charge for each service at predefined rates, which is an essential characteristic that distinguishes it from other payment models such as capitation, where providers receive a set amount per patient regardless of the number of services rendered, or risk-based contracts that involve sharing financial risks and rewards based on patient outcomes and costs.