Two Wrongs Do Not Make a Right: Flaws in Alternatives to Fee-for-Service Payment Plans Do Not Mean Fee-for-Service Is a Good Solution to Rising Prices; Comment on “Fee-for-Service Payment - An Evil Practice That Must Be Stamped Out?”

Abstract

Professor Naoki Ikegami’s “Fee-for-service payment – an evil practice that must be stamped out” summarizes many of the failings of alternatives to fee-for-service (FFS) payment systems. His article also offers several suggestions for improving FFS systems. However, even powerful arguments against many of the alternatives to FFS, does not make a convincing argument for FFS systems. In addition, there are significant misunderstandings in Professor Ikegami’s presentation of and use of United States payment methods, the role of private vs. public insurance systems, and the increasing role of “accountable care organizations.”

Keywords

• Cost
• Fee-for-Service (FFS)
• Accountable Care Organizations