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Table 1 Comparisons between FFS, capitation, and blended funding models

From: Global landscape of community pharmacy services remuneration: a narrative synthesis of the literature

Models

FFS

Capitation

Blended funding models

Definition

Healthcare providers are compensated by a fixed number of incentives based on the quantity of the services they provide

Healthcare providers receive payments at the beginning of each month according to the number of patients assigned to them

A hybrid model, mostly fee-for-services are integrated with capitation models

Advantages

Healthcare providers are keen to provide as many patient care services as possible

- The quality of services and cost-effectiveness of the treatment are improved

- Pharmacy operators are less likely to have financial problems

Address the single-base funding model’s shortcomings

Disadvantages

- Healthcare providers may ignore the quality of the patients care services

- Pharmacists may ask the patients to fill their prescriptions even if they still have enough medicines, which could lead to medicine over-usage

- Pharmacists receive delayed incentives due to complex and lengthy claiming processes

- Less patients able to receive professional health services from pharmacists

- Physicians may prescribe less medications to the patients to reduce the cost of treatment

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