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DEFINITION of 'Service Charge'. A type of fee charged to cover services related to the primary product or service being purchased. For example, a concert venue may charge a service fee in addition to the initial price of a ticket in order to cover the cost of security or for allowing electronic purchases.
Fee-for-service (FFS) is a payment model where services are paid for as itemized in the hospitals invoice.It gives an incentive for physicians to provide more treatments because payment is dependent on the quantity of care, rather than quality of care.imilarly, patients are incentivized to welcome any medical service that might not be necessary. Insurance companies shield themselves against ruin by setting cover limits for every beneficiary. Others Fee-for-service (FFS) is a payment model where services are unbundled and paid for separately.