County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series Analysis

This study aimed to assess the effects of a two-stage funding reform, involving DRGs-based (Diagnostic Related Groups) payments for inpatient care and capitation funding for outpatient care, respectively, on services volume and care expenditure of county hospitals in Zhejiang province, China. A quas...

Full description

Saved in:
Bibliographic Details
Main Authors: Tao Zhang, Jing Liu, Xiaohe Wang, Chaojie Liu
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Health Systems & Reform
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23288604.2023.2258770
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850135229003464704
author Tao Zhang
Jing Liu
Xiaohe Wang
Chaojie Liu
author_facet Tao Zhang
Jing Liu
Xiaohe Wang
Chaojie Liu
author_sort Tao Zhang
collection DOAJ
description This study aimed to assess the effects of a two-stage funding reform, involving DRGs-based (Diagnostic Related Groups) payments for inpatient care and capitation funding for outpatient care, respectively, on services volume and care expenditure of county hospitals in Zhejiang province, China. A quasi-experimental design was adopted, involving 6 hospitals from 2 counties in the intervention group and 12 hospitals from 5 counties in the control group. The DRGs-based payments for inpatient care and capitation funding for outpatient care were introduced in January 2018 and January 2019, respectively. Controlled interrupted time-series analyses were performed to determine the effects of the funding reforms using monthly data over the period from January 2017 to December 2019. The volume of inpatient care decreased after the introduction of the first-stage DRGs-based payments, which was accompanied by an increase in the volume of outpatient visits. The DRGs-based payments led to a reduction of on average 1390 Yuan total expenditure per episode of inpatient care and 1116 Yuan out-of-pocket (OOP) payment per episode of inpatient care. However, the average outpatient expenditure per visit increased. So did the corresponding OOP payment per outpatient visit. The introduction of the second-stage capitation funding for outpatient care reversed the increasing trend of outpatient care. The average expenditure and OOP payment per outpatient visit decreased. The funding reforms create a significant effect on service volumes and expenditures in county hospitals. A coordinated approach to both inpatient and outpatient funding mechanisms is needed to minimize cost-shifting between inpatient and outpatient care and to achieve the intended policy outcomes.
format Article
id doaj-art-d67a80f9f3f54be9bfd16ed76ee55e2e
institution OA Journals
issn 2328-8604
2328-8620
language English
publishDate 2023-12-01
publisher Taylor & Francis Group
record_format Article
series Health Systems & Reform
spelling doaj-art-d67a80f9f3f54be9bfd16ed76ee55e2e2025-08-20T02:31:29ZengTaylor & Francis GroupHealth Systems & Reform2328-86042328-86202023-12-019110.1080/23288604.2023.2258770County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series AnalysisTao Zhang0Jing Liu1Xiaohe Wang2Chaojie Liu3Department of Health Policy and Management, School of Public Health, Hangzhou Normal University, Hangzhou, Zhejiang, ChinaAdministrative Office, Yuebei People’s Hospital, Shaoguan, Guangdong, ChinaDepartment of Health Policy and Management, School of Public Health, Hangzhou Normal University, Hangzhou, Zhejiang, ChinaSchool of Psychology and Public Health, La Trobe University, Melbourne, AustraliaThis study aimed to assess the effects of a two-stage funding reform, involving DRGs-based (Diagnostic Related Groups) payments for inpatient care and capitation funding for outpatient care, respectively, on services volume and care expenditure of county hospitals in Zhejiang province, China. A quasi-experimental design was adopted, involving 6 hospitals from 2 counties in the intervention group and 12 hospitals from 5 counties in the control group. The DRGs-based payments for inpatient care and capitation funding for outpatient care were introduced in January 2018 and January 2019, respectively. Controlled interrupted time-series analyses were performed to determine the effects of the funding reforms using monthly data over the period from January 2017 to December 2019. The volume of inpatient care decreased after the introduction of the first-stage DRGs-based payments, which was accompanied by an increase in the volume of outpatient visits. The DRGs-based payments led to a reduction of on average 1390 Yuan total expenditure per episode of inpatient care and 1116 Yuan out-of-pocket (OOP) payment per episode of inpatient care. However, the average outpatient expenditure per visit increased. So did the corresponding OOP payment per outpatient visit. The introduction of the second-stage capitation funding for outpatient care reversed the increasing trend of outpatient care. The average expenditure and OOP payment per outpatient visit decreased. The funding reforms create a significant effect on service volumes and expenditures in county hospitals. A coordinated approach to both inpatient and outpatient funding mechanisms is needed to minimize cost-shifting between inpatient and outpatient care and to achieve the intended policy outcomes.https://www.tandfonline.com/doi/10.1080/23288604.2023.2258770CapitationChinaDRGsinterrupted time series analysespublic hospitals
spellingShingle Tao Zhang
Jing Liu
Xiaohe Wang
Chaojie Liu
County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series Analysis
Health Systems & Reform
Capitation
China
DRGs
interrupted time series analyses
public hospitals
title County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series Analysis
title_full County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series Analysis
title_fullStr County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series Analysis
title_full_unstemmed County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series Analysis
title_short County Hospital Responses to Funding Reforms in Zhejiang, China: An Interrupted Time-Series Analysis
title_sort county hospital responses to funding reforms in zhejiang china an interrupted time series analysis
topic Capitation
China
DRGs
interrupted time series analyses
public hospitals
url https://www.tandfonline.com/doi/10.1080/23288604.2023.2258770
work_keys_str_mv AT taozhang countyhospitalresponsestofundingreformsinzhejiangchinaaninterruptedtimeseriesanalysis
AT jingliu countyhospitalresponsestofundingreformsinzhejiangchinaaninterruptedtimeseriesanalysis
AT xiaohewang countyhospitalresponsestofundingreformsinzhejiangchinaaninterruptedtimeseriesanalysis
AT chaojieliu countyhospitalresponsestofundingreformsinzhejiangchinaaninterruptedtimeseriesanalysis