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Getting Incentives Right? The Impact of Hospital Capitation Payment in Vietnam

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  • Ha Thi Hong Nguyen
  • Sarah Bales
  • Adam Wagstaff
  • Huyen Dao

Abstract

This paper evaluates the impact on cost and utilization of a shift from fee‐for‐service to capitation payment of district hospitals by Vietnam's social health insurance agency. Hospital fixed effects analysis suggests that capitation leads to reduced costs. Hospitals also increased service provision to the uninsured who continue to pay out‐of‐pocket on a fee‐for‐service basis. The study points to the need to anticipate unintended effects of payment reforms, especially in the context of a multiple purchaser system. Copyright © The World Bank Health Economics © 2015 John Wiley & Sons, Ltd.

Suggested Citation

  • Ha Thi Hong Nguyen & Sarah Bales & Adam Wagstaff & Huyen Dao, 2017. "Getting Incentives Right? The Impact of Hospital Capitation Payment in Vietnam," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 263-272, February.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:2:p:263-272
    DOI: 10.1002/hec.3294
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    References listed on IDEAS

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    1. Moreno-Serra, Rodrigo & Wagstaff, Adam, 2010. "System-wide impacts of hospital payment reforms: Evidence from Central and Eastern Europe and Central Asia," Journal of Health Economics, Elsevier, vol. 29(4), pages 585-602, July.
    2. Ma, Ching-to Albert, 1994. "Health Care Payment Systems: Cost and Quality Incentives," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 3(1), pages 93-112, Spring.
    3. Mills, Anne & Bennett, Sara & Siriwanarangsun, Porntep & Tangcharoensathien, Viroj, 2000. "The response of providers to capitation payment: a case-study from Thailand," Health Policy, Elsevier, vol. 51(3), pages 163-180, April.
    4. Sanita Hirunrassamee & Sauwakon Ratanawijitrasin, 2009. "Does your health care depend on how your insurer pays providers? Variation in utilization and outcomes in Thailand," International Journal of Health Economics and Management, Springer, vol. 9(2), pages 153-168, June.
    5. Ellis, Randall P., 1998. "Creaming, skimping and dumping: provider competition on the intensive and extensive margins1," Journal of Health Economics, Elsevier, vol. 17(5), pages 537-555, October.
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    Cited by:

    1. Xianyi Wang & Xiaofang Wang & Hui He, 2021. "Contracts to Coordinate Healthcare Providers in the Telemedicine Referral System," Sustainability, MDPI, vol. 13(18), pages 1-25, September.
    2. Ha Trong Nguyen & Luke B Connelly, 2017. "Cost-sharing in health insurance and its impact in a developing country: evidence from a quasi-natural experiment," Bankwest Curtin Economics Centre Working Paper series WP1702, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    3. Piotr Korneta & Magdalena Kludacz-Alessandri & Renata Walczak, 2021. "The Impact of COVID-19 on the Performance of Primary Health Care Service Providers in a Capitation Payment System: A Case Study from Poland," IJERPH, MDPI, vol. 18(4), pages 1-19, February.
    4. Si Ying Tan & Jiwei Qian, 2019. "An unintended consequence of provider payment reform: The case of capitation grants in the National Health Insurance reform of Indonesia," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(4), pages 1688-1710, October.

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