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Global budget versus cost ceiling: a natural experiment in hospital payment reform in the Netherlands.

ABSTRACT: Global budget (GB) arrangements have become a popular method worldwide to control the rise in healthcare expenditures. By guaranteeing hospital funding, payers hope to eliminate the drive for increased production, and incentivize providers to deliver more efficient care and lower utilization. We evaluated the introduction of GB contracts by certain large insurers in Dutch hospital care in 2012 and compared health care utilization to those insurers who continued with more traditional production-based contracts, i.e., cost ceiling (CC) contracts. We used the share of GB hospital funding per postal code region to study the effect of contract types. Our findings show that having higher share of GB financing was associated with lower growth in treatment intensity, but it was also associated with higher growth in the probability of having at least one hospital visit. While the former finding is in line with our expectation, the latter is not and suggests that hospital visits may take longer to respond to contract incentives. Our study covers the years of 2010-2013 (2 years before and 2 years following the introduction of the new contracts). Therefore, our results capture only short-term effects.

SUBMITTER: Gaspar K

PROVIDER: S-EPMC7058687 | biostudies-literature | 2020 Feb

REPOSITORIES: biostudies-literature

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Global budget versus cost ceiling: a natural experiment in hospital payment reform in the Netherlands.

Gaspar Katalin K Portrait France F van der Hijden Eric E Koolman Xander X

The European journal of health economics : HEPAC : health economics in prevention and care 20190916 1

Global budget (GB) arrangements have become a popular method worldwide to control the rise in healthcare expenditures. By guaranteeing hospital funding, payers hope to eliminate the drive for increased production, and incentivize providers to deliver more efficient care and lower utilization. We evaluated the introduction of GB contracts by certain large insurers in Dutch hospital care in 2012 and compared health care utilization to those insurers who continued with more traditional production-b ...[more]

PMID: 31529343

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Project description:BackgroundIn 2004, the Centers for Medicare & Medicaid Services changed reimbursement for physicians and advanced practitioners caring for patients receiving hemodialysis from a capitated to a tiered fee-for-service system, encouraging increased face-to-face visits. This early version of a pay-for-performance initiative targeted a care process: more frequent provider visits in hemodialysis. Although more frequent provider visits in hemodialysis are associated with fewer hospitalizations and rehospitalizations, it is unknown whether encouraging more frequent visits through reimbursement policy also yielded these benefits.Study designWe used a retrospective cohort interrupted time-series study design to examine whether the 2004 nephrologist reimbursement reform led to reduced hospitalizations and rehospitalizations. We also used published data to estimate a range of annual economic costs associated with more frequent visits.Setting & participantsMedicare beneficiaries in the United States receiving hemodialysis in the 2 years prior to and following reimbursement reform.PredictorThe 2 years following nephrologist reimbursement reform.OutcomesOdds of hospitalization and 30-day hospital readmission for all causes and fluid overload; US dollars.ResultsWe found no significant change in all-cause hospitalization or rehospitalization and slight reductions in fluid overload hospitalization and rehospitalization following reimbursement reform; the estimated economic cost associated with additional visits ranged from $13 to $87 million per year, depending on who (physicians or advanced practitioners) spent additional time visiting patients and how much additional effort was involved.LimitationsDue to limited information about how much additional time providers spent seeing patients after reimbursement reform, we could only examine a range of potential economic costs associated with the reform.ConclusionsA Medicare reimbursement policy designed to encourage more frequent visits during outpatient hemodialysis may have been costly. The policy was associated with fewer hospitalizations and rehospitalizations for fluid overload, but had no effect on all-cause hospitalizations or rehospitalizations.

Dataset Information

Global budget versus cost ceiling: a natural experiment in hospital payment reform in the Netherlands.

Publications

Global budget versus cost ceiling: a natural experiment in hospital payment reform in the Netherlands.

Similar Datasets

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