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Fee-for-Service Volume and Payment Explorer

Change the number of consultations, tests and procedures—or their approved fees—to see how fee-for-service payment is built one billable service at a time.

Teaching model: The services, volumes and fees are synthetic and illustrative. They are not a recommended fee schedule.

Build the service mix

Billable service	Quantity	Approved fee	Payment	One more service adds
Total

Total billable services0

Total FFS payment£0

Average payment per service£0

What this scenario shows

How payment is calculated

Each service category has a quantity (q) and an approved fee (r). Payment is the sum of quantity multiplied by fee across all categories.

P_FFS = Σ(q_j × r_j)

Share of total payment

Why volume matters

When a billable service is delivered, total revenue increases by that service’s approved fee. This creates a direct link between activity and payment.

What the model leaves out

Real systems may include coding rules, claim denials, patient cost sharing, expenditure caps, discounts, quality conditions and different fees by provider or patient.

Important distinction

The model shows provider revenue, not profit. Delivering another service can increase revenue while also increasing staffing, supply and facility costs.