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Theoretical Analysis of Hospitals Response to a Per Diem Prospective Payment System

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dc.contributor.authorDmitry Shapiro-
dc.date.accessioned2021-06-02T02:47:04Z-
dc.date.available2021-06-02T02:47:04Z-
dc.date.issued2021-05-
dc.identifier.citationSeoul Journal of Economics, Vol.34 No.2, pp. 171-202-
dc.identifier.issn1225-0279-
dc.identifier.other999-000441-
dc.identifier.urihttps://hdl.handle.net/10371/174530-
dc.description.abstractJapan has one of the longest average length of stay in hospital (ALOS) among developed countries. To curb the high ALOS, the Ministry of Health, Labor and Welfare has launched a payment system reform where instead of the pre-reform fee-for-service system (FFS) a new per-diem prospective payment system (DPC/PDPS) has been gradually adopted. We develop a theoretical framework to model hospitals incentives under different payment systems and to study the impact of the reform on the ALOS. We show that hospitals with a longer (shorter) pre-reform ALOS shorten (lengthen) their post-reform ALOS. Furthermore, hospitals with longer prereform ALOS have stronger incentives to use planned readmission to decrease the post-reform length of stay associated with a single admission. The theoretical predictions of our model match empirical evidence from the literature.-
dc.language.isoen-
dc.publisherInstitute of Economic Research, Seoul National University-
dc.subjectHealth care financing-
dc.subjectProspective payment system-
dc.subjectper-diem rate-
dc.subjectlength of stay-
dc.subjectreadmission rate-
dc.titleTheoretical Analysis of Hospitals Response to a Per Diem Prospective Payment System-
dc.typeSNU Journal-
dc.identifier.doi10.22904/sje.2021.34.2.002-
dc.citation.journaltitleSeoul Journal of Economics-
dc.citation.endpage202-
dc.citation.number2-
dc.citation.pages171-202-
dc.citation.startpage171-
dc.citation.volume34-
Appears in Collections:
College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.34 no.1~4 (2021)
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