Ramifications of Participation Contracts Essay Example

ttling for less revenue because the insurers will more likely than not pay less than the provider’s scheduled fees. Prior to joining any plan a provider has the choice to review several plans before making a decision. This allows the provider to choose a plan that meets his or her practice and financial needs (Valerius, Baynes, Newby, & Seggern, 2008, p. 304).

As with any arrangement there are positive and negative ramifications associated with it and discounted fee-for-service arrangements are no different. This form of arrangement is offered through the Preferred Provider Organizations plan, and the providers are paid based on a discount from their fee schedules. A positive ramification to this arrangement is that the provider is paid based on the services versus a monthly income. Therefore, the providers are more inclined to provide a variety services or treatments which will increase the provider’s income,