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Payment system reform for health care providers in Korea

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  • Payment system reform for health care providers in Korea
  • Kwon, Soonman
  • Oxford University Press


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Title Payment system reform for health care providers in Korea
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Material Type Articles
Author(English)

Kwon, Soonman

Publisher

[Oxford U.K.]:Oxford University Press

Date 2003-07
Journal Title; Vol./Issue Health Policy and Planning:vol. 18(no. 1)
Pages 9
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Economic Administration
Social Development < Health
Holding Oxford University Press

Abstract

Since its introduction in 1977, the national health insurance programme in Korea has paid health care providers on a fee-for-service basis. Regulated fee-for-service payment has resulted in an increased volume and intensity of medical care. It has also distorted the input mix of treatment because physicians have substituted more profitable and uninsured (no coverage) medical services for those with lower margins, as is evidenced by the sharp increase in the caesarean delivery rate. This paper examines two recent supply-side reforms in Korea: Diagnosis Related Group (DRG) and Resource-based Relative Value (RBRV). Since 1997, through a pilot programme covering a selected group of diseases for voluntarily participating health care institutions, the DRG-based prospective payment system has proven to be effective in containing cost with little negative effect on quality. (The rest omitted)