Which statement best describes the incentive structure of fee-for-service reimbursement?

The incentive structure of fee-for-service reimbursement is primarily designed to promote a greater volume of services provided. In this model, healthcare providers are compensated for each specific service or treatment rendered. This means that the more tests, procedures, or consultations a provider offers, the higher their reimbursement will be. As a result, the system inherently incentivizes providers to deliver additional services, regardless of the necessity or overall efficiency of the care delivered.

This approach can lead to increased healthcare costs because it may encourage providers to perform more interventions that may not always be beneficial to patient outcomes. Unlike models that focus on value-based care or outcomes, the fee-for-service structure does not prioritize the quality or effectiveness of care. Instead, it centers on the quantity of care given, which explains why option B accurately captures the essence of the incentive structure in a fee-for-service system.