Compare the benefits and limitations of the major forms of reimbursement on the delivery of healthcare services.

Fee-For-Service (FFS):
Benefits: FFS systems provide physicians with autonomy while allowing them to determine their own fee schedules. Additionally, patients have more flexibility and choice in terms of selecting their medical provider as well as the services they receive.
Limitations: The cost of healthcare can quickly add up with FFS since providers are paid for each individual service or procedure that is performed. This system also tends to incentivize unnecessary care which can drive up costs for everyone involved.
Capitation:
Benefits: Capitation systems limit financial risk for providers since they are paid a set amount regardless of how many treatments or services are provided, thus reducing the potential for additional costs associated with excessive procedures or treatments. It also encourages preventative care by incentivizing physicians to keep patients healthy rather than focusing on secondary treatments.
Limitations: This type of payment model can put financial pressure on some providers who may be required to provide certain levels of care without being adequately reimbursed which could lead to issues such as burnout and low quality of care due patient volume restraints. Additionally, capitated payments do not take into account regional differences so reimbursement rates will not necessarily reflect higher costs associated with treatments based on geographic location.