Title Can a global budget improve health care efficiency? Experimental evidence from China
Authors Zhang, Hao
Zhang, Luying
Xu, Roman
Pan, Jay
Hu, Min
Jian, Weiyan
Yip, Winnie
Affiliation Harvard Univ, Harvard TH Chan Sch Publ Hlth, Dept Global Hlth & Populat, Boston, MA 02115 USA
Fudan Univ, Sch Publ Hlth, Shanghai, Peoples R China
Southern Med Univ, SMU Inst Global Hlth, Guangzhou, Peoples R China
Southern Med Univ, Sch Hlth Management, Guangzhou, Peoples R China
Sichuan Univ, West China Sch Publ Hlth, HEOA Grp, Chengdu, Peoples R China
Peking Univ, Sch Publ Hlth, Dept Hlth Policy & Management, Beijing, Peoples R China
Keywords RANDOMIZATION
Issue Date May-2022
Publisher HEALTH ECONOMICS
Abstract Health care in China suffers from substantial allocative inefficiency in the delivery system and technical inefficiency within hospitals. To ameliorate this problem in rural areas, the Analysis of Provider Payment Reforms on Advancing China's Health (APPROACH) project shifted the payment method of China's rural health insurance scheme for county hospitals from fee-for-service to a novel global budget. In particular, APPRAOCH global budget incentivized system-level allocative efficiency by reimbursing county hospitals at higher tariffs for gatekeeping and averting out-of-county (OOC) admissions among local patients they could treat. APPROACH conducted a large-scale randomized controlled trial of the global budget in 56 counties (22 million enrollees) of Guizhou province during 2016-2017. Applying randomization inference to claims data, we find a significant shift of inpatient utilization and expenditure from OOC hospitals to county hospitals. At county hospitals, average expenditure per admission and length of stay decreased, though not significantly. Effects on readmissions show no clear sign of compromised quality. We further find limited effect heterogeneity with respect to treatment and hospital characteristics. Overall, APPROACH global budget may offer a framework for improving health care efficiency without sacrificing quality.
URI http://hdl.handle.net/20.500.11897/646816
ISSN 1057-9230
DOI 10.1002/hec.4531
Indexed SCI(E)
SSCI
Appears in Collections: 公共卫生学院

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