The Impact of Various Payment Method on the Use and Quality of Health Services

Abstract

From an economic point of view, the salary of the general practitioner group is relatively much lower than the specialists or doctors who doubles in management. However, in the regency or remote hospitals, the role of general practitioners is still very noticeable. When compared to general practitioners, the salary of specialists is greater in most hospitals. The definitions of a specialist doctor's salary  is all the income they (specialist doctors) get from their profession as specialists include salary, fee-for-service income from private practice and in hospitals, and capitation income from health insurance. The impact of various payment method on the use and quality of health services is still a controversy . Various studies are still needed to determine the impact of changes of payment policy. However, some interesting preliminary data are found. Compared to the fee-for-service period, doctors who were paid monthly decreased hospital admissions by 13%, while doctors who were paid on the capitation model decreased admissions by 8%. The fee-for-service payment model tends to increase the cost of health services.