The paper 'Fee for Services as a Dominant Payment Process Design for Medical Services" is a perfect example of finance and accounting coursework. Service provision is a very significant element in the prosperity of the global economy currently. A larger percentage of the US GDP is collected through service provision (Bitner, Ostrom, & Morgan, 2008, p. 68). This is a relatively large industry that employs a larger percentage of American citizens. Both previous and current studies indicate that services have been rated to dominate global economies compared to the manufacturing and technology departments.
Innovation is a key factor when discussing the prosperity of the service industry. Studies indicate the despite the fact that service is more dominant in economic growth compared to manufacturing and technology, it is still less innovative compared to the latter two. The service industry is big in the US and it ranges from the provision of primary needs to secondary luxury needs. Health care industry providing medical services represents one of the basic needs that Americans need constantly to better their lives. Hospitals are the major components of health care that ensure their provision.
In hospitals, there are many processes that are very significant in service provision. This particular discussion highlights one of the major processes in medical service provision in hospitals and sheds more light on the consequences of this particular process in terms of its design and management. Fee for services is the most common payment process design that is used by both private and federal health care facilities in the country. It has been analyzed to favor poor quality of service as practitioners manipulate it to gain more profit (Bohmer, 2009, p.
1). Payment for health care services is one crucial area that has generated heated debates in the country. A number of health care policies have been enacted in relation to medical services payment in hospitals. All this is geared towards quality provision. The design of this particular process is meant to ensure that people pay for the right services that they get in hospitals. It is therefore important to cover the consequences of the fee for service as a dominant payment process in relation to the quality of health care services provided. The most fundamental underlying principle towards service provision is to create a memorable experience for the customer (Bitner, Ostrom, & Morgan, 2008, p.
68). Most service provision companies and professionals use this factor to create a good relationship with the customers that they serve. The payment system in hospitals in the country has been largely criticized for failing to maintain this good relationship between service providers and those who receive the services. The bone of contention towards this is created from the need for payment for quality rather than for quantity.
To receive value for their money, patients have to pay for good services provided to them in hospitals rather than being charged for the duration that they have stayed in the hospitals. Health care practitioners in hospitals use loopholes created by this dominant payment process to increase their revenues through increased service provisions and increased charges for their services. This, however, does not consider quality but rather volume is the term that is used to describe the criteria they use to impose their charges.
This particular approach is affecting the healthcare department in terms of innovativeness. Quality provision of medical services is one of the key goals of the health care act in the country. The payment system should, therefore, be able to emphasize that through the provision of quality at low overall medical costs.