One Difference Between a Fee-For-Service (FFS) Reimbursement Arrangement and Capitation

One difference between a fee-for-service (FFS) reimbursement arrangement and capitation is that the FFS arrangement:

A) Is a prospective payment system, whereas capitation is a retrospective payment system
B) Has a potential to induce providers to underutilize medical resources, whereas capitation does  71 not have this potential disadvantage
C) Bases the amount of reimbursement on the actual medical services delivered, whereas reimbursement under capitation is independent of the actual volume and cost of services provided
D) Is most often used by health plans to reimburse healthcare facilities, whereas capitation is most often used by health plans to reimburse specialty care providers

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