Challenges and Adverse Outcomes of Implementing Reimbursement Mechanisms Based on the Diagnosis-Related Group Classification System: A systematic review

Sultan Qaboos Univ Med J. 2020 Aug;20(3):e260-e270. doi: 10.18295/squmj.2020.20.03.004. Epub 2020 Oct 5.

Abstract

In health insurance, a reimbursement mechanism refers to a method of third-party repayment to offset the use of medical services and equipment. This systematic review aimed to identify challenges and adverse outcomes generated by the implementation of reimbursement mechanisms based on the diagnosis-related group (DRG) classification system. All articles published between 1983 and 2017 and indexed in various databases were reviewed. Of the 1,475 articles identified, 36 were relevant and were included in the analysis. Overall, the most frequent challenges were increased costs (especially for severe diseases and specialised services), a lack of adequate supervision and technical infrastructure and the complexity of the method. Adverse outcomes included reduced length of patient stay, early patient discharge, decreased admissions, increased re-admissions and reduced services. Moreover, DRG-based reimbursement mechanisms often resulted in the referral of patients to other institutions, thus transferring costs to other sectors.

Keywords: Diagnosis-Related Groups; Health Insurance; Patient Outcome Assessment; Quality of Health Care; Reimbursement Mechanisms; Systematic Review; Third-Party Payments.

Publication types

  • Systematic Review

MeSH terms

  • Classification / methods*
  • Diagnosis-Related Groups / classification
  • Diagnosis-Related Groups / economics*
  • Humans
  • Reimbursement Mechanisms / economics
  • Reimbursement Mechanisms / standards*
  • Reimbursement Mechanisms / trends
  • Treatment Outcome