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Table 1 A conceptual framework for provider payment methods

From: Paying for prevention in clinical practice: Aligning provider remuneration with system objectives

Method

Basis of payment

Total expenditure

Increase income

Salary

Inputs (time)

E = (E/T) × (T/P) × P

Increase time

FFS

Throughputs (services)

E = (E/Q) × (Q/P) × P

Increase services

Capitation

Responsibility (clients)

E = (E/N) × (N/P) × P

Increase clients

  1. E = Total Expenditure, P = number of providers, T = provider hours, Q = services provided, N = clients served, E/T = wage rate per hour, E/Q = average service fee, E/N = average capitation fee