Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Health Economics Research Programme, University of Oslo HERO On line Working Paper Series

No 2015:1:
Do changes in reimbursement fees affect hospital prioritization?

Hans Olav Melberg () and Kine Pedersen ()

Abstract: It has been argued that activity based payment systems make hospitals focus on the diagnostic groups that are most profitable given costs and reimbursement rates. This article tests the hypothesis by exploring the relationship between changes in the DRG reimbursement rates and changes in the number of registered treatment episodes for all DRG-codes and hospitals in Norway between 2006 and 2013. The results show that hospitals increase the number of admissions in a diagnostic group when the reimbursement rate is increased, and decrease it (or increase it less) when DRG-rates are reduced. Across all treatments, during all years included in our primary analysis, the increase in volume is about four times as large for DRG-categories with increased reimbursement compared to DRGs with decreased reimbursement rates. However, the results also show that the number of treatment episodes in a diagnostic category is affected by many other factors in addition to the economic incentives.

Keywords: DRG; activity based payment system; distortions; effect of financial incentives; priorities; (follow links to similar papers)

JEL-Codes: I10; I12; I18; (follow links to similar papers)

28 pages, January 8, 2015

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

2015-1.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Anbjørg Kolaas ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:oslohe:2015_001 This page was generated on 2015-01-08 10:11:05