In order to curb the rapid growth in medical expenditures, the administration of National Health Insurance (NHI) is gradually changing its payment system from the fee-for-service (FFS) payment system to the case payment one. This study explored the impacts of this policy on public and non-profit proprietary hospitals' medical services and financial performances, by comparing the before and after results of eight DRG codes incepted on October 1, 1997. The results show that, after the introduction of the case payment system, the average length of stay has decreased significantly, but no apparent evidence to conclude the average reimbursement has decreased. Nevertheless, both case volume and medical revenues have significantly increased after the inception of the case payment system. Further, we also found that nonprofit proprietary hospitals seem to outperform their public-sector counterparts in the selected financial indicators.
- National Health Insurance
- Payment system
- Public hospital
- Nonprofit proprietary hospital
- Financial performance