How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?

Abstract Background This study investigates the impact of the diagnosis-related group (DRG) reimbursement system and subsidy policies on the treatment methods of traditional Chinese medicine (TCM) orthopaedic physicians. The objective is to determine the optimal subsidy amount to maximize the number...

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Main Authors: Jin Zhang, Junfeng Liu, Lingfei Qu, Zihao Duan
Format: Article
Language:English
Published: BMC 2025-06-01
Series:Health Economics Review
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Online Access:https://doi.org/10.1186/s13561-025-00643-6
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author Jin Zhang
Junfeng Liu
Lingfei Qu
Zihao Duan
author_facet Jin Zhang
Junfeng Liu
Lingfei Qu
Zihao Duan
author_sort Jin Zhang
collection DOAJ
description Abstract Background This study investigates the impact of the diagnosis-related group (DRG) reimbursement system and subsidy policies on the treatment methods of traditional Chinese medicine (TCM) orthopaedic physicians. The objective is to determine the optimal subsidy amount to maximize the number of treated patients. Methods Using Evans’ profit maximization theory, the study examines the intrinsic motivations behind physicians’ behaviours and their influence on the medical market. A discontinuous time series analysis evaluates the effects of the C-DRG-based reimbursement system and subsidies on the number of treated inpatients and inpatient expenses in TCM orthopaedics. Results The expanded implementation of the C-DRG-based reimbursement system substantially boosted both orthopaedic surgery and TCM technology case volumes, with 55 additional orthopaedic procedures and 200 extra TCM interventions recorded (p < 0.001).Total and surgical expenses decreased notably by 42.7% and 26.29%, respectively(p < 0.001), while inpatient expenses for TCM techniques decreased significantly by 32.63% (p < 0.05). Subsidy policies during the C-DRG-based reimbursement system implementation significantly increased the use of appropriate TCM techniques without substantially impacting total expenses. Physicians partially achieved both DRG expenses control and subsidy policy objectives by reducing total expenses and increasing TCM technique usage. The optimal subsidy amount was calculated to be 584.79 RMB, showing a linear relationship with TCM orthopaedic cases, with peak usage aligning with optimal subsidy timing. Conclusion The C-DRG-based reimbursement system and subsidy policies positively influenced the treatment methods of TCM orthopaedic physicians, increasing the number of treated cases and reducing expenses. An optimal subsidy of 584.79 RMB was identified to maximize the number of treated patients, aligning with both DRG expenses control and subsidy policy objectives.
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spelling doaj-art-4888c819eb524ccfaa0be5ad732949a32025-08-20T02:05:49ZengBMCHealth Economics Review2191-19912025-06-0115111910.1186/s13561-025-00643-6How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?Jin Zhang0Junfeng Liu1Lingfei Qu2Zihao Duan3Dong Fureng Institute of Economic and Social Development, Wuhan UniversityDong Fureng Institute of Economic and Social Development, Wuhan UniversityThe Center of Finance Research, Wuhan UniversityDong Fureng Institute of Economic and Social Development, Wuhan UniversityAbstract Background This study investigates the impact of the diagnosis-related group (DRG) reimbursement system and subsidy policies on the treatment methods of traditional Chinese medicine (TCM) orthopaedic physicians. The objective is to determine the optimal subsidy amount to maximize the number of treated patients. Methods Using Evans’ profit maximization theory, the study examines the intrinsic motivations behind physicians’ behaviours and their influence on the medical market. A discontinuous time series analysis evaluates the effects of the C-DRG-based reimbursement system and subsidies on the number of treated inpatients and inpatient expenses in TCM orthopaedics. Results The expanded implementation of the C-DRG-based reimbursement system substantially boosted both orthopaedic surgery and TCM technology case volumes, with 55 additional orthopaedic procedures and 200 extra TCM interventions recorded (p < 0.001).Total and surgical expenses decreased notably by 42.7% and 26.29%, respectively(p < 0.001), while inpatient expenses for TCM techniques decreased significantly by 32.63% (p < 0.05). Subsidy policies during the C-DRG-based reimbursement system implementation significantly increased the use of appropriate TCM techniques without substantially impacting total expenses. Physicians partially achieved both DRG expenses control and subsidy policy objectives by reducing total expenses and increasing TCM technique usage. The optimal subsidy amount was calculated to be 584.79 RMB, showing a linear relationship with TCM orthopaedic cases, with peak usage aligning with optimal subsidy timing. Conclusion The C-DRG-based reimbursement system and subsidy policies positively influenced the treatment methods of TCM orthopaedic physicians, increasing the number of treated cases and reducing expenses. An optimal subsidy of 584.79 RMB was identified to maximize the number of treated patients, aligning with both DRG expenses control and subsidy policy objectives.https://doi.org/10.1186/s13561-025-00643-6Diagnosis-Related Group (DRG) payment systemAppropriate Traditional Chinese Medicine (TCM) techniquesInterrupted time series analysis (ITS)Policy impactOptimal subsidy expenses value
spellingShingle Jin Zhang
Junfeng Liu
Lingfei Qu
Zihao Duan
How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?
Health Economics Review
Diagnosis-Related Group (DRG) payment system
Appropriate Traditional Chinese Medicine (TCM) techniques
Interrupted time series analysis (ITS)
Policy impact
Optimal subsidy expenses value
title How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?
title_full How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?
title_fullStr How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?
title_full_unstemmed How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?
title_short How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?
title_sort how does the dual policy the c drg based reimbursement system and subsidy policy for appropriate traditional chinese medicine tcm techniques influence physicians choice of disease treatment methods in tcm hospitals
topic Diagnosis-Related Group (DRG) payment system
Appropriate Traditional Chinese Medicine (TCM) techniques
Interrupted time series analysis (ITS)
Policy impact
Optimal subsidy expenses value
url https://doi.org/10.1186/s13561-025-00643-6
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