The Evolution and Future Directions for Provider Payment in Taiwan

Abstract

This paper deals primarily with the changes in Taiwan's health care in response to changes in the medical reimbursement programs in three different periods. Initially, the inauguration of National Health Insurance (NHI) reduced the waiting list for medical services. Although medical accessibility has been improved to a great extent, there will be an increase of medical expenses. The current reimbursement program continues to employ the fee-for-service program, which was adopted for Laborer's Insurance, thus created health care providers opportunities for increasing their earnings under the conditions of unequal information flow. Medical expenses in Taiwan do not reflect the actual costs of medical services, and there is a great discrepancy between expenses for outpatient and inpatient services. There is also an imbalance in the development of medical departments. Therefore、if it is possible to extend the coverage of the case payment program or adopt reimbursement programs such as capitation payment or total global budget in the future, it may increase the financial management responsibility of health care providers and promote the transparency of medical information, In this way, it will be possible to improve the quality of health care while increasing their financial responsibility.