Venue: The Fuqua School of Business, Duke University, 1 Towerview Drive, Durham, NC 27708-0120

 

Presentation

Hospitals always find their ways: the global-budget experience in Taiwan

Authors: Yi-Chen Hong (Chinese Culture University); Chin-Hung Lin (Taipei Veterans General Hospital); Ching-Wen Chien (National Yang-Ming University)

Presenter: Yi-Chen Hong (Chinese Culture University)

Discussant: Lee R. Mobley (RTI International)

Session: Paying for Care

Room: Classroom F

When: Monday 3:15 p.m. - 4:45 p.m.

Rationale: Since 2002, the Bureau of National Health Insurance (BHNI) in Taiwan has adopted the global budget to compensate all medical centers. Also, after July 2004, the BNHI recommended the Hospital Excellence Program (HEP), an individual hospital budget, for medical centers. Ten medical centers accepted this program and owned their individual budget; six rejected it and they shared a common global budget.

Objective: This study tries to illustrate how hospitals' behavior would be affected under different compensation types (individual hospital budget or common global budget).

Theoretical Model: The theoretical analysis in this study presented supplying behaviors for two kinds of hospitals. As to the theoretical analysis, those HEP participant hospitals would limit their service volume voluntarily and the non-participant hospitals sharing a common global budget would increase their service volume to compete with each other.

Empirical Methods and Results: The dataset extracted from NHI claim data of all medical centers in 2003, 2004 and 2005. Then testify the behaviors of two groups of hospitals in different time periods, before and after implementation of HEP. The theoretical expectation of this study could be supported by the empirical results. The non-HEP participant hospitals expanded their service amount more significantly than the participant.

Implication: The HEP participant medical centers are different from the non-HEP participant in service supplying behaviors.