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Tapering payments in hospitals: Experiences in OECD countries

Author

Listed:
  • Grégoire de Lagasnerie
  • Valérie Paris
  • Michael Mueller

    (OECD)

  • Ankit Kumar

    (OECD)

Abstract

This study covers “tapering scale” mechanism in hospital payments, i.e. mechanisms linking unit prices to the volume of services produced. This paper begins with an overview of hospital services and hospital payment methods in OECD countries, focusing more specifically on DRG-based payment. It then reviews studies published on economies of scales in hospitals, which is the economic rationale justifying tapering payments. Thereafter, four case studies from Germany, the US State of Maryland, the Czech Republic and Israel offer a detailed insight into the practicalities of introducing this method of controlling hospital volumes and the impacts it has had. Ce rapport porte sur les politiques de dégressivité tarifaire appliquées au paiement des hôpitaux, c’est-à-dire les mécanismes liant les prix unitaires des services hospitaliers au volume de soins produits. Ce document de travail dresse tout d’abord un panorama de l’offre hospitalière et des modes de paiement des hôpitaux au sein des pays de l’OCDE en étudiant plus spécifiquement le paiement à l’activité. Il présente ensuite une revue des études portant sur les économies d’échelle dans le secteur hospitalier, justification principale de la diminution des tarifs au-delà d’un seuil de production. Enfin, quatre études de cas en Allemagne, l’État du Maryland, la République tchèque et Israël sont présentées afin d’étudier finement les modalités d’instauration et l’impact de ce mécanisme de contrôle des volumes hospitaliers.

Suggested Citation

  • Grégoire de Lagasnerie & Valérie Paris & Michael Mueller & Ankit Kumar, 2015. "Tapering payments in hospitals: Experiences in OECD countries," OECD Health Working Papers 78, OECD Publishing.
  • Handle: RePEc:oec:elsaad:78-en
    DOI: 10.1787/5js4h5rlkxxr-en
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    Citations

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    Cited by:

    1. World Bank, 2015. "Bulgaria Health Financing," World Bank Publications - Reports 22964, The World Bank Group.
    2. Pott, Clara & Stargardt, Tom & Frey, Simon, 2023. "Does prospective payment influence quality of care? A systematic review of the literature," Social Science & Medicine, Elsevier, vol. 323(C).
    3. Katalin Gaspar & France Portrait & Eric Hijden & Xander Koolman, 2020. "Global budget versus cost ceiling: a natural experiment in hospital payment reform in the Netherlands," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(1), pages 105-114, February.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy

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