Version 1
: Received: 9 May 2021 / Approved: 11 May 2021 / Online: 11 May 2021 (11:29:16 CEST)
How to cite:
Lin, S.; Rouse, P.; Zhang, F.; Wang, Y. A Multi-Level System of Performance Evaluation Using Diagnosis-Related Groups for Cost Containment. Preprints.org2021, 2021050244. https://doi.org/10.20944/preprints202105.0244.v1.
Lin, S.; Rouse, P.; Zhang, F.; Wang, Y. A Multi-Level System of Performance Evaluation Using Diagnosis-Related Groups for Cost Containment. Preprints.org 2021, 2021050244. https://doi.org/10.20944/preprints202105.0244.v1.
Cite as:
Lin, S.; Rouse, P.; Zhang, F.; Wang, Y. A Multi-Level System of Performance Evaluation Using Diagnosis-Related Groups for Cost Containment. Preprints.org2021, 2021050244. https://doi.org/10.20944/preprints202105.0244.v1.
Lin, S.; Rouse, P.; Zhang, F.; Wang, Y. A Multi-Level System of Performance Evaluation Using Diagnosis-Related Groups for Cost Containment. Preprints.org 2021, 2021050244. https://doi.org/10.20944/preprints202105.0244.v1.
Abstract
This study aims to develop a performance evaluation system that can facilitate performance evaluation at region, hospital, and department levels to enable better cost management for sustainable development. A multi-level system of performance evaluation informs a hierarchical assessment of cost management from regions to hospitals to departments using diagnosis-related group (DRGs). Various metrics are developed employing the variances between targets and actuals where targets are determined from two perspectives: benchmarking using external regional prices and change management using internal data. Targets for the latter are statistically based and specifically incorporate variability. The model is applied to two hospitals, twenty departments, nine DRGs and 1071 inpatients. The analyses indicate that the approach can provide a practical evaluation tool that allows for particular characteristics at multiple levels. The system provides macro-micro and external-internal perspectives in performance, enabling high-level variances to be decomposed thereby identifying sources of performance variability and financial impact.
Keywords
Cost containment; Performance Evaluation; Multi-level System; Diagnosis-related Group (DRG); Health system sustainability
Subject
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
