A payment method in which physician charges, hospital charges and all pre-operative and post-operative care are paid at a fixed
fee is known as
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Allocation mechanisms and provider payment methods refers to the ways in which money are distributed from a source of funds to an individual provider or to a health care facility. There are four main methods for payment for doctor's services: fee-for-service, capitation, performance payment and salary payment; and four basic methods for payment and regulation of hospitals and other health facilities: global budgeting, line item budgeting, per diem and case-based payment (DRGs). Each method of payment to providers has its own specificities, strengths and weaknesses, and each may be appropriate alone or in combination with other, which depends on various circumstances and environment.
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