Physician Practice

Physician Compensation Trend In 2022

An uneven fad from Fee-for-Service Reimbursement to Value-Based Compensation

Dr. ADAM TABRIZ
Curated Newsletters
4 min readJun 14, 2022

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Photo by Petr Magera on Unsplash

The concerns for human existence and health have reached back centuries. Since the ancient Greek epoch, when only the elite and the privileged enjoyed personal cleanliness and sanitation, the concept of public health has been growing. It is one of the most critical challenges for almost every community.

Every era had its experimentation with how physicians and healers would be reimbursed. For instance, It was typical for Greek physicians to be employed annually by their respective metropolis. Then, average physicians received reimbursement from funds allocated to them by their municipality. The standard payment disbursed to physicians for incidental visits was very small, with no more than two “goats.”

Even though varied reimbursement models throughout history by location, all had one thing in common. They were all Fee-for-service, a model in which physicians charge apiece per medical service they render. In other words, in a fee-for-service scheme, physicians are compensated based on the number of services and procedures they provide. Based on the criteria mentioned, later on, until today, insurance payers reimbursed physicians as well.

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Dr. ADAM TABRIZ
Curated Newsletters

In this vast tapestry of existence, I weave my thoughts and observations about all facets of life, offering a perspective that is uniquely my own.