Under which organization type are practicing providers compensated on a fee-for-service basis?

Practicing providers in a Preferred Provider Organization (PPO) are compensated on a fee-for-service basis, which means that they get paid for each service they provide to patients. This payment structure allows providers flexibility in the services they offer, as they are reimbursed individually for each procedure, consultation, or treatment rendered to a patient.

In this model, patients typically have the option to see any healthcare provider, but they tend to pay lower out-of-pocket costs when using a provider within the PPO's network. The fee-for-service approach can incentivize providers to deliver more services since their earnings are based on the volume of care they provide, rather than a fixed salary or a capitation arrangement.

This distinguishes PPOs from other organizational types such as Health Maintenance Organizations (HMOs) and Exclusive Provider Organizations (EPOs), which often emphasize a more managed care approach with fixed fees or capitation models. Additionally, Point of Service (POS) plans incorporate features of both HMOs and PPOs, but they too typically discourage fee-for-service compensation as their focus is on coordinated care through network providers.