Differentiate the concepts of cost and revenue and assess the benefits and limitations of the major form of reimbursement on the delivery of health care services.

Cost and revenue are two important concepts in the delivery of health care services, as they both refer to the money that is involved in providing the service. Cost refers to the expenses incurred by an organization when delivering a service, such as labor costs, materials, equipment and supplies. Revenue refers to income generated through providing health care services, such as insurance premiums or patient fees.

The major form of reimbursement on the delivery of health care services is fee-for-service (FFS) reimbursement. The main benefit of this system is that it incentivizes providers to provide high quality services for patients because they are paid for each service rendered. However, there are some limitations with FFS reimbursement as well; for example, it does not reward outcomes-based performance or encourage preventative measures which can help reduce overall long-term costs associated with treatment. Additionally, FFS has been criticized for contributing to higher medical costs due to increased usage of unnecessary tests or procedures just so providers can bill more money per visit.

Overall, cost and revenue are integral parts of any health care business model and FFS reimbursement offers incentives for providers while also presenting its own unique challenges. In order to optimize resources while also ensuring quality outcomes for patients, organizations need to find ways to effectively navigate both cost and revenue considerations along with other forms of payment systems such as value based payments or capitation models.