Payment method

Nurses play a pivotal role in providing care within the boundaries of their organization’s budget. In order to become a leader in the field to improve quality care and reduce cost, you need to understand the nuances of the way health care organizations are paid.


Complete the table to analyze each payment mode.

Apply what you’ve learned to complete the activity following the table.

Payment Mode Name




Fee for Service

Pay for Performance

Patient-Centered Medical Homes

Accountable Care Organizations

Bundled Payments

Global Budgets

Payment Mode Activity

If you were the person in each of the following scenarios, which payment mode would you prefer and why ?

  • A 28-year-old with poorly controlled diabetes
  • An elderly individual with multiple chronic conditions
  • A pediatric neurosurgeon
  • A registered nurse

Provide a short rationale for each decision.