Some doctors in the us are paid a fee for all the services


Some doctors in the US are paid a fee for all the services they perform for their patients. Other doctors receive a fixed payment (capitation) for each of their patients, regardless of the number of services performed.

a) What are the advantages and disadvantages of the incentives under fee for service?

b) What are the advantages and disadvantages of the incentives under capitation?  

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Business Economics: Some doctors in the us are paid a fee for all the services
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