What payment method is commonly used to settle healthcare provider claims?

The fee-for-service payment method is a traditional model in which healthcare providers are paid for each service they perform. This approach allows for a direct correlation between the services rendered and the payment received, incentivizing providers to offer more services, as each is billed separately. Under this method, healthcare providers receive a specified fee for every visit, procedure, or treatment, which can lead to increased healthcare utilization.

This payment structure is commonly used because it straightforwardly reflects the provider's work. Patients receive services, and providers are compensated individually for each service, allowing for detailed tracking and reporting of healthcare expenditures. It is particularly prevalent in many private practice settings and is often contrasted with other models like capitation, where providers receive a set amount per patient, regardless of the number of services provided.

Overall, fee-for-service remains a widely recognized and applied method for settling claims in the healthcare provider landscape, making it a suitable answer for the question posed.