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Evaluating the results of applying case based payment method for normal delivery cases at Thanhnhan hospital, Hanoi (2012-2014)

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Objectives: To evaluate the results from the implementation of case-based payment method for normal delivery at Thanhnhan Hospital, 2012 - 2014, to compare the length of stay and level of drugs used between two groups of women applying and not applying case-based payment method and evaluate the service’s quality and acceptability to the new payment method.

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EVALUATING THE RESULTS OF APPLYING CASE-BASED PAYMENT METHOD FOR NORMAL DELIVERY CASES AT

THANHNHAN HOSPITAL, HANOI (2012 - 2014)

Chu Phuc Thi*; Pham Le Tuan**; Hoang Hai***

SUMMARY

Objectives: To evaluate the results from the implementation of case-based payment method

for normal delivery at Thanhnhan Hospital, 2012 - 2014, to compare the length of stay and level

of drugs used between two groups of women applying and not applying case-based payment method and evaluate the service’s quality and acceptability to the new payment method

Subjects and methods: This is a study of hospital cost analysis, using both quantitative and

qualitative methods Data related to treatment costs of all women giving births at Thanhnhan Hospital from January 2012 to December 2014, who voluntarily chosen the payment methods, were collected and analyzed using SPSS 20.0 Information from in-depth interviews with health care providers, mothers and health insurance experts was analyzed and cited according to

subject matters Results: Applying case-based payment method has encouraged the hospital to

use resources reasonably and controlled cost raising of normal delivery cases Group of normal delivery women applying case-based payment method had average length of stays lower than that of group which did not apply, ranging from 3.7% to 6.87%; the average costs of drug was also lower among the mothers applying case-based payment method at about 17.73% to 92.91%; average of total cost in the group applying case-based payment method was lower than that of women who do not apply from 31.05% to 62.05% All comparisons were significant

at p value = 0.05 The women in both groups had satisfied with the quality of services received

and the stakeholders do support the new payment mechanism Conclusions : The

case-based payment method could be an appropriate option for Vietnamese hospitals for controlling and limiting the cost increase

* Keywords: Payment method; Case-based payment; Normal delivery; Thanhnhan Hospital

INTRODUCTION

Reforming the mechanism of operation

and management of health financing and

hospital payment system are the priorities

for Vietnam to promote the development

of the health sector in an equitable,

effective and sustainability manner [3]

In order to achieve this goal, the Ministry

of Health has piloted case-based payment method at Thanhnhan and Bavi Hospitals from 2009 to 2011, and then extended the implementation from 2012 to 2014 New payment method should be studied and evaluated scientifically in order to make

* Thanhnhan Hospital

** Ministry of Health

*** Vietnam Military Medical University

Corresponding author: Chu Phúc Thi (thichu70@gmail.com)

Date received: 18/08/2017

Date accepted: 23/11/2017

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accurate conclusions Therefore, we

conducted a study to evaluate the

implementation of case-based payment

method for normal delivery cases at

Thanhnhan Hospital, from 2012 to 2014

with the following objectives:

- Comparing the length of stay and

level of drugs used between two groups

of women applied and not applied

case-based payment method

acceptability for the new payment method

SUBJECTS AND METHODS

1 Subjects and sample size

- All women giving births at Thanhnhan

Hospital from January 2012 to December

2014, who voluntarily selected using

case-based payment method

- Intentionally select one hospital leader,

two clinical staff members in the obstetric

department, one health insurance expert,

and 22 normal delivery women for in-depth

interviews

2 Methods

* Research design: Study of hospital

cost analysis, combined both quantitative and qualitative methods

* Viewpoint: Service provider fees

(Hospital charge)

* Study variables:

- Average length of stay, mean of drug charge, average total charge for a normal delivery case

- Quality of normal delivery services and acceptability for case-based payment method

* Data collection and processing: Data

on inpatient charges were extracted from hospital financial software during 2012,

2013 and 2014 MSSQR software was used

to pairing the birth records with charged items and length of stay; export the data

to Excel spreadsheet for cleaning; Data were then entered, managed and analyzed using SPSS 20.0 statistical software In-depth interviews were synthesized, analyzed and cited according to subject matters

RESULTS AND DISCUSSIONS

1 Evaluating the results of applying case-based payment method for normal delivery cases

Table 1: Average length stay of normal delivery, Thanhnhan Hospital, 2012 - 2014

payment group

Case-based payment group

Comparing between 2 groups

2012

2013

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2014

Total

The average length of stay (LOS) in the group applying case-based payment method was 3.23, 3.13 and 3.11 days, in the group of non-case-based payment method was 3.34, 3.28 and 3.33 days in 2012, 2013, and 2014, respectively The comparison between the two groups, applying and not applying case-based payment method, showed that the group which applied new payment method had an average LOS less than that of the non-applied group of 3.7%, 4.75% and 6.87%, respectively in 2012,

2013 and 2014 and statistically significant at p < 0.05

Table 2: Average medication costs of normal delivery at Thanhnhan Hospital,

2012 - 2014

Unit: VND

payment group

Case- based payment group

Comparing between

2 groups

2012

(p < 0.05)

2013

(p < 0.05)

2014

(p < 0.05)

Total

(p < 0.05)

Total drug costs in the group of case-based payment method was 119,464 VND in

2012 to 105,297 VND in 2013 and 106,004 VND in 2014 The comparison between the two groups showed that the drug cost was lower in the group applied case-based payment method from 17.73% to 92.91% and statistically significant at p < 0.05

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Table 3: Average of total hospital charges (excluding costs of subclinical tests),

normal delivery case, Thanhnhan Hospital, 2012 - 2014

Unit: VND

payment group

Case-based payment group

Comparing between

2 groups

2012

(p < 0.05)

2013

(p < 0.05)

2014

(p < 0.05)

Total

(p < 0.05)

The total mean cost (excluding costs

for subclinical testing) in the normal delivery

group applying case-based payment method

was often lower than that of non-case-based

payment group at 31.05%, 62.05% and

57.08% for 2012, 2013 and 2014, respectively

(p < 0.05) Average for 3 years, the average

charges of normal delivery group applying

case-based payment method was 48.93%

lower than that in the group not applying

case-based payment method

The results from applying case-based

payment method clearly demonstrated the

effect of reducing the average number of treatment days, reducing drug costs, and limiting cost increases when applying new payment method for normal delivery at Thanhnhan Hospital Similar results also had been reported in piloting period 2009 -

2011 [2] and in other international research reports [4, 5] Results of the study in Italy

in 2011 showed that the average cost for the normal delivery births which applied fee for services method was 1,166.83 euros; 263.89 euros (26%) higher than that of diagnosis-related group (DRG) payment method (922.94 euros) [6]

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2 Quality of service and acceptability

for new payment methods

In addition to the benefits achieved by

applying the case-based payment method,

some other aspects need to be considered

concurrently [1] We assessed at and

compared the variables of the average

length of stay and drug costs The results

showed that no patient was discharged

early and no excessive cost was cut: two

aspects that usually negatively affect the

quality of treatment for patients

Results of in-depth interviews of women

with or without case-based payment method

showed that they were satisfied with the

services received during the labor and

delivery at Thanhnhan Hospital Women

of both groups reported that there were no

differences in term of care at the obstetric

department, for some aspects of quality

that the women can observe and assess

by themselves (the attitudes, counseling

provision to women about postpartum care,

drug use, medical materials and services

at the maternity ward) Health insurance

and clinical staff at Thanhnhan Hospital

said that there was no reduction in giving

drugs and subclinical tests for women

applying case-based payment method to

limit the costs, because there must be a

compliance with the requirements of the

clinical pathway Data on costs collected

also proved this matter Similar results were

also indicated in other countries which

applying case base payment method [4, 5]

Stakeholders who involved in new payment

method: service users, representatives of

health insurance agency (service buyer)

and Thanhnhan Hospital (service provider)

expressed their support to case-based

payment method due to the benefits gained, although there were some areas that need

to be improved so that new payment modality could be deployed on a large scale

CONCLUSIONS

The cased-based payment method could

be an appropriate option for Vietnamese hospitals, for controlling and containing the cost increases, promoting reasonable use of resources, improving quality of treatment services Stakeholders (clinical staff, hospital leader, health insurance staff and service users) support the adoption

of case-based payment method

REFERENCES

1 Ministry of Health, the Planning Department

Hospital fee for services, case-based payment method 2007

2 Nguyen Thi Thuy Nga, Bui Thi My Anh

Overview of methods of payment for health insurance services for providers in Vietnam Journal of Medicine Practice 2013, 874 (6), pp.179-182

3 Pham Le Tuan Renovating the financial

mechanism to achieve the goal of universal health care coverage Second Health Economics Conference, Hanoi, November 2012 Ministry

of Health 2012, pp.25-43

4 Cheryl Cashin, Sheila O Dougherty et al

Case-based hospital payment systems: A step -

by step guide for design and implementation

in low and middle income countries USAID ZdravPlus Project 2005

5 John C Langenbrunner et al Designing

and implementing health care provider payment systems How to manuals The World Bank and the USAID 2009

6 Pizzo Elena An estimate of costs and

benefits of alternative methods of delivery:

an empirical analysis Imperial College, London

2011

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