Reimbursement is the process where healthcare providers or facilit ies receive payment f rom patient s for the services given. Reimbursement for healthcare uses various types of reimbursement, which are selected based on the need of the healthcare . The following are types of reimbursement used in healthcare: fee for service, managed care approach, bundled charges (package pricing), cost plus reimbursement, resource - based relative value scale , and prospective reimbursement . Healthcare can use either one mechanism or apply more than one mechanism, and the generated systems must pay off with regard to the quantity, quality , or difficulty of the care provided. A fee of service and managed care mechanism are discussed in detail below.

This is a health insurance system in which a health practitioner or a different health care provider receives payment for each of the service s they provide, for example, X-ray, examination and tetanus shots, X-ray, examination and tetanus shots, remunerating medical providers in accordance with the amount and quantity of services the y offer, with no cons ideration of the outcome. Many health providers prefer this mechanism since there is an increment in the cost of service.