Fee-for-service (FFS) is a traditional and widely used payment model for healthcare where services are unbundled and paid for separately. It is a retrospective cost-based payment. The specific method is that the insurance institution reimburses according to the patient's cost of the medical report reported by the institution or doctor. The reimbursement depends on the price and quantity of each service item they provided. Overview Regulating FFS payment is more feasible and straightforward to administer than other payment models since it requires less complex mechanisms to ensure appropriate function. So physicians have historically been paid FFS, and it continues to be the dominant method in most countries. In FFS, individual items of care are reimbursed retrospectively, but excessive services and unnecessary or inappropriate care may be encouraged. The drawbacks include up-coding, overtreatment, and excessive readmissions.