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Fee-for-Service

A method of paying for health or medical services. Doctors and hospitals are paid for each individual service they provide to the patient. Bills can be paid in two different ways; paid by the patient who submits the claims to the insurance company or the provider can submit for reimbursement to the patient's insurance carrier.

Administrative Costs

Administrative costs refer to outlays that are not directly related to the service or good a company is selling. For a standard business this could…