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Brown Bag Lunch
Monday
27
September
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Diagnosis-Related Groups Payment and Inpatient Care Delivery: Evidence from China

Zhubin Chen, Affiliate Researcher at Global Health Centre
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Maison de la Paix - Genève, Room S1 Petal 2 (hybrid event)

PLEASE NOTE: Access to indoor public events is limited to attendees with a Swiss or European COVID certificate. In addition, face masks must be worn to all in-person events at the Graduate Institute.

The Brown Bag Lunch is a weekly event organized by the Department of International Economics.

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As part of the Brown Bag Lunch series, the International Economics Department at the Graduate Institute is pleased to invite you to a public talk given by Zhubin Chen, Affiliate Researcher at the Global Health Centre.

 

Diagnosis-Related Groups Payment and Inpatient Care Delivery: Evidence from China

Abstract: To contain the growth of basic medical insurance expenses, China launched a nationwide experiment of diagnosis-related groups (DRGs) payment. I use event study and regression discontinuity in time models and administrative data to study the effect of a pilot DRGs payment on inpatient care delivery in Zhejiang province. I find robust evidence that DRGs payment reduces expenditure per admission (EPA) and length of stay (LOS) respectively by 12 and 8 percent within one year of implementation. The negative effect on EPA is short-lived, but the effect on LOS persists for more than 2 years. Meanwhile, I show the decrease of LOS does not occur at the cost of premature discharge but rather an efficiency improvement of inpatient care delivery.