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The effects of the diagnosis-intervention packet payment reform in China

Evidence from Guangzhou

Bibliographic Data

ID22079400
AuthorsYuhao Wang (0009-0008-5833-2418, China Pharmaceutical University), Xiaoqing Huang (0009-0002-3722-0990, China Pharmaceutical University), Nana Lu (Zhongda Hospital Southeast University), Xin Xu (0000-0002-9972-8995, China Pharmaceutical University), Lina Wang (0009-0002-3877-4928, China Pharmaceutical University), Wenwen Du (0000-0002-8288-0181, China Pharmaceutical University, corresponding author), Wei Xu (0000-0002-4727-1540, China Pharmaceutical University, corresponding author)
Year2025
Volume13
Pages1633222-1633222
Publication date2025-09-05
Open AccessYes
TypeARTICLE
VenueFrontiers in Public Health (JOURNAL)
Journal identifiersISSN: 2296-2565 • E-ISSN: 2296-2565
PublisherFrontiers Media SA (PUBLISHER • CH)
DOI10.3389/fpubh.2025.1633222
PMID40977807
OpenAlexW4414027483
LanguageEN
Citations received2
References cited29

Background: This study evaluated the impact of Guangzhou's Diagnosis-Intervention Packet (DIP) payment reform, introduced as an alternative to the traditional fee-for-service (FFS) model, on inpatient costs, patients' out-of-pocket (OOP) payments, hospital length of stay (LOS) and 30-day readmission rate. Method: We conducted a single-group interrupted time series analysis using monthly data from the Guangzhou Urban Employee Basic Medical Insurance Scheme, spanning January 2017 to June 2020. Outcome indicators included inpatient cost per case, medication expenditures, medical consumables expenditures, diagnostic and therapeutic service expenditures, OOP payments, LOS and 30-day readmission rate. Results: While the DIP reform was associated with a modest reduction in the rate of LOS decline, it did not significantly lower inpatient cost. Instead, total inpatient expenditures exhibited a sustained upward trend in the post-reform period. Moreover, OOP payments per case increased significantly following the reform, indicating a heavier financial burden on patients. Sub-item analysis revealed that medication expenditures declined and stabilized after a pre-policy drop, whereas diagnostic and therapeutic service expenditures continued to grow without evident signs of deceleration. The 30-day readmission rate remained largely stable throughout the study period. Conclusion: The DIP reform in Guangzhou did not achieve its intended goals of reducing inpatient expenditures or alleviating patients' financial burdens. These unintended effects were driven by the incentive structure of the DIP system-particularly its reliance on historical cost data for RW calculation and its reimbursement deduction method-which encouraged hospitals to shift costs and elevate OOP payments. Policymakers should reassess DIP's algorithmic parameters and strengthen cost-accounting transparency to ensure more equitable and efficient medical insurance fund allocation

Business · China · Computer network · Environmental health · Network packet · Payment · Political science · Computer Science · Healthcare Policy and Management · Healthcare Systems and Reforms · Medicine · Nursing · Primary Care and Health Outcomes · Finance

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Citations per year2
Citation span2026 - 2026 (1)
Highly citedNo

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