Comparison of diagnosis related groups perspective payment system(DRGs-PPS)and fee-for-services

Abstract

It is the core of provider payment reform in healthcare that payment methods can be chosen correctly.According to the framework of contract theory,this paper compared the“pricing cost”and“monitoring cost”between diagnosis related groups perspective payment system(DRGs-PPS)and feefor-service.And then,based on contract theory,this paper further turn to analyzed the main management problems during the implementation of DRGs-PPS,and put forward relevant policies key points from the aspects of“monitoring”and“maintaining”.This paper drawn the basic conclusions that,comparing to feefor-services,DRG-s-PPS have relative low transaction; therefore,the transformation from fee-for-service to DRGs-PPS will benefit the virtuous circle of the healthcare market.However,DRGs-PPS is new deal for China,so it need to be pushed forward steadily with the full consideration of healthcare regulations and system maintenance. Key words: Medical services; Payment; DRGs-PPS; Fee-for-services