Evaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui Province

Abstract Background The payment methodology for diagnosis-related groups (DRG) has implications for both society and medical institutions. Our study aims to analyse the impact of the reform of the payment policy according to the DRG on the operation of a tertiary hospital in Anhui Province. Methods...

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Main Authors: Guangju Mo, Erchang Zhu, Xinlei Fang, Jingbo Ma, Sijing Kong, Xuan Guo, Zheng Lu
Format: Article
Language:English
Published: BMC 2024-12-01
Series:Health Research Policy and Systems
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Online Access:https://doi.org/10.1186/s12961-024-01255-y
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author Guangju Mo
Erchang Zhu
Xinlei Fang
Jingbo Ma
Sijing Kong
Xuan Guo
Zheng Lu
author_facet Guangju Mo
Erchang Zhu
Xinlei Fang
Jingbo Ma
Sijing Kong
Xuan Guo
Zheng Lu
author_sort Guangju Mo
collection DOAJ
description Abstract Background The payment methodology for diagnosis-related groups (DRG) has implications for both society and medical institutions. Our study aims to analyse the impact of the reform of the payment policy according to the DRG on the operation of a tertiary hospital in Anhui Province. Methods Monthly data were collected from April 2020 to September 2023 during the reform period for a tertiary hospital on nine types of operational indicators, including average length of stay (ALOS), number of discharges, number of outpatient visits, percentage of discharged patients undergoing level III or IV surgery, bed turnover rate, inpatient essential drug utilization rate, low-risk group mortality, outpatient subaverage cost and inpatient subaverage cost. The data were divided into two phases according to the time of DRG implementation: pre-reform (April 2020–December 2021) and post-reform (January 2022–September 2023), and the segmented regression model with interrupted time series data was used to analyse the changes in the trend of each type of indicator before and after the reform. Statistical analysis was performed using R software (4.3.1). Results After the implementation of the DRG, the number of discharges increased by 112 800 patients (95% confidence interval [CI] 31.125–194.484, P = 0.008), the bed turnover rate rose by 1.403% (95% CI 1.028–1.778, P = 0.022) and the percentage of discharged patients undergoing level III or IV surgery decreased by 0.098% (95% CI −0.181 to −0.015, P = 0.022). The low-risk group mortality decreased by 0.016% (95% CI −0.027 to −0.005, P = 0.007), and the inpatient subaverage cost decreased by 81.514 CNY (95% CI −121.782 to −41.245, P < 0.001). However, there were no significant differences in the trends of average length of stay, outpatient visits, inpatient essential drug utilization rate and outpatient subaverage cost after the DRG implementation. Conclusions The findings show that the DRG reform has positively impacted hospital functioning, including quality, safety, efficiency and costs. Although the average length of stay remained unchanged, there was an increase in discharged patients and outpatient visits, indicating hospitals adapted to the new payment model. The reduction in low-risk group mortality suggests improvements in patient safety and care quality. However, challenges remain, as evidenced by decreased surgical complexity and initial drops in bed turnover rates. While the DRG reform holds promise for enhancing healthcare efficiency and controlling costs, potential negative effects such as patient selection bias and coding changes need to be monitored. Future research should focus on the long-term effects of the DRG policy across different healthcare institutions.
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spelling doaj-art-e4352d1b1e5f4a02942c9de7a69dabd52024-12-22T12:55:57ZengBMCHealth Research Policy and Systems1478-45052024-12-0122111310.1186/s12961-024-01255-yEvaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui ProvinceGuangju Mo0Erchang Zhu1Xinlei Fang2Jingbo Ma3Sijing Kong4Xuan Guo5Zheng Lu6The First Affiliated Hospital of Bengbu Medical UniversityThe First Affiliated Hospital of Bengbu Medical UniversityThe First Affiliated Hospital of Bengbu Medical UniversityThe First Affiliated Hospital of Bengbu Medical UniversityThe First Affiliated Hospital of Bengbu Medical UniversityThe First Affiliated Hospital of Bengbu Medical UniversityThe First Affiliated Hospital of Bengbu Medical UniversityAbstract Background The payment methodology for diagnosis-related groups (DRG) has implications for both society and medical institutions. Our study aims to analyse the impact of the reform of the payment policy according to the DRG on the operation of a tertiary hospital in Anhui Province. Methods Monthly data were collected from April 2020 to September 2023 during the reform period for a tertiary hospital on nine types of operational indicators, including average length of stay (ALOS), number of discharges, number of outpatient visits, percentage of discharged patients undergoing level III or IV surgery, bed turnover rate, inpatient essential drug utilization rate, low-risk group mortality, outpatient subaverage cost and inpatient subaverage cost. The data were divided into two phases according to the time of DRG implementation: pre-reform (April 2020–December 2021) and post-reform (January 2022–September 2023), and the segmented regression model with interrupted time series data was used to analyse the changes in the trend of each type of indicator before and after the reform. Statistical analysis was performed using R software (4.3.1). Results After the implementation of the DRG, the number of discharges increased by 112 800 patients (95% confidence interval [CI] 31.125–194.484, P = 0.008), the bed turnover rate rose by 1.403% (95% CI 1.028–1.778, P = 0.022) and the percentage of discharged patients undergoing level III or IV surgery decreased by 0.098% (95% CI −0.181 to −0.015, P = 0.022). The low-risk group mortality decreased by 0.016% (95% CI −0.027 to −0.005, P = 0.007), and the inpatient subaverage cost decreased by 81.514 CNY (95% CI −121.782 to −41.245, P < 0.001). However, there were no significant differences in the trends of average length of stay, outpatient visits, inpatient essential drug utilization rate and outpatient subaverage cost after the DRG implementation. Conclusions The findings show that the DRG reform has positively impacted hospital functioning, including quality, safety, efficiency and costs. Although the average length of stay remained unchanged, there was an increase in discharged patients and outpatient visits, indicating hospitals adapted to the new payment model. The reduction in low-risk group mortality suggests improvements in patient safety and care quality. However, challenges remain, as evidenced by decreased surgical complexity and initial drops in bed turnover rates. While the DRG reform holds promise for enhancing healthcare efficiency and controlling costs, potential negative effects such as patient selection bias and coding changes need to be monitored. Future research should focus on the long-term effects of the DRG policy across different healthcare institutions.https://doi.org/10.1186/s12961-024-01255-yInterrupted time series analysisDRGPolicy evaluationALOSMedical cost
spellingShingle Guangju Mo
Erchang Zhu
Xinlei Fang
Jingbo Ma
Sijing Kong
Xuan Guo
Zheng Lu
Evaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui Province
Health Research Policy and Systems
Interrupted time series analysis
DRG
Policy evaluation
ALOS
Medical cost
title Evaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui Province
title_full Evaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui Province
title_fullStr Evaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui Province
title_full_unstemmed Evaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui Province
title_short Evaluation of the effect of DRG payment policy based on interrupted time series modeling: evidence from a tertiary hospital in Anhui Province
title_sort evaluation of the effect of drg payment policy based on interrupted time series modeling evidence from a tertiary hospital in anhui province
topic Interrupted time series analysis
DRG
Policy evaluation
ALOS
Medical cost
url https://doi.org/10.1186/s12961-024-01255-y
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