Which managed care product is considered simple to evaluate?

The fee-for-service model is considered simple to evaluate because it involves clear and straightforward billing for each individual service provided. Under this model, healthcare providers are paid a specific amount for each service, procedure, or consultation they perform. This allows for easy tracking of costs and revenues because each service is itemized, making it uncomplicated to analyze the volume and type of services rendered.

In contrast, other managed care products, such as capitation, case rate, and fee schedules, involve more complexity in evaluation. For example, capitation pays a fixed amount per patient regardless of how many services are provided, which can complicate assessments of cost efficiency. Case rates bundle payments for an entire episode of care, which requires more extensive tracking and analysis of patient outcomes and costs across a range of services. Fee schedules set predetermined rates for various services but may be influenced by numerous factors, including negotiations and adjustments over time, making it less straightforward than the fee-for-service approach.

Therefore, due to the clarity and direct correlation between services delivered and payment received, fee-for-service stands out as the simplest model for evaluation.