Diagnosis-Related Groups payment reform and hospital cost control

• Published in: Technology and health care Vol. 33; no. 1; pp. 17 - 24
• Main Authors: Lin, Ai-Ling, Hou, Jian-Hua
• Format: Journal Article
• Language: English
• Published: London, England SAGE Publications 01.01.2025; Sage Publications Ltd
• Subjects: Cost Control; Diagnosis; Diagnosis-Related Groups - economics; Effectiveness; Finance; Health care; Health Care Reform - economics; Health services; Hospital Costs; Hospitals; Hospitals, Public - economics; Humans; Management methods; Medical diagnosis; Payments; Project management; Reimbursement Mechanisms - economics; cost management; DRG payment method; integration of industry and finance; hospital cost control; public hospital
• ISSN: 0928-7329; 1878-7401; 1878-7401
• DOI: 10.3233/THC-240110

BACKGROUND: This study explores the influence of Diagnosis-Related Groups (DRG) payment reform on hospital cost control and offers pertinent cost management strategies for public hospitals. It situates the research by elucidating the significance of the DRG payment method and comparing its advantages and drawbacks with the traditional ‘pay per project’ model. OBJECTIVE: The primary aim is to assess the impact of DRG payment reform on hospital cost control and propose effective cost management strategies for public hospitals. The objective is to provide insights into DRG payment implications and attempt practical recommendations for its implementation in the public healthcare sector. METHODS: Employing a comprehensive approach, the study analyzes DRG payment, delineates advantages and drawbacks, and proposes cost management strategies. Methods include staff training, an information management platform, disease analysis, and optimized cost accounting. The study highlights the potential for improved medical diagnosis and treatment through industry-finance integration. RESULTS: Findings reveal advantages and limitations of DRG payment, emphasizing strategies for optimizing hospital operations. Enhanced medical diagnosis and treatment procedures through industry-finance integration contribute to overall cost control effectiveness. CONCLUSION: The study serves as a practical guide for implementing DRG payment reforms, offering valuable insights for policymakers and healthcare professionals in navigating the complexities of cost control in public healthcare.