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From the same journal

The long-run effects of diagnosis related group payment on hospital lengths of stay in a publicly funded health care system: Evidence from 15 years of micro data

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JournalHealth Economics
DateAccepted/In press - 27 Jan 2022
DateE-pub ahead of print (current) - 2 Mar 2022
Early online date2/03/22
Original languageEnglish

Abstract

Diagnosis Related Group (DRG) payment systems are a common means of paying for hospital services. They reward greater activity and therefore potentially encourage more rapid treatment. This paper uses 15 years of administrative data to examine the impact of a DRG system introduced in England on hospital lengths of stay. We utilize different econometric models, exploiting within and cross jurisdiction variation, to identify policy effects, finding that the reduction of lengths of stay was greater than previously estimated and grew over time. This constitutes new and important evidence of the ability of financing reform to generate substantial and persistent change in healthcare delivery.

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© 2022 The Authors. Health Economics published by John Wiley & Sons Ltd.

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