2019
DOI: 10.1186/s13561-019-0256-4
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Buying efficiency: optimal hospital payment in the presence of double upcoding

Abstract: BackgroundWith DRG payments, hospitals can game the system by ’upcoding’ true patient’s severity of illness. This paper takes into account that upcoding can be performed by the chief physician and hospital management, with the extent of the distortion depending on hospital’s internal decision-making process. The internal decision making can be of the principal-agent type with the management as the principal and the chief physician as the agent, but the chief physicians may be able to engage in negotiations wit… Show more

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Cited by 5 publications
(3 citation statements)
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“…In some cases, this may even lead to a falsification of codes associated with the underlying diagnosis to achieve higher reimbursement rates. This phenomenon is also known as “upcoding” and was reported as one of the main problems with reimbursement in the German health economy in the early 2000s [ 39 , 40 ].…”
Section: Discussionmentioning
confidence: 99%
“…In some cases, this may even lead to a falsification of codes associated with the underlying diagnosis to achieve higher reimbursement rates. This phenomenon is also known as “upcoding” and was reported as one of the main problems with reimbursement in the German health economy in the early 2000s [ 39 , 40 ].…”
Section: Discussionmentioning
confidence: 99%
“…ODM model can help to find and select the optimal solution. In addition, the ODM model was used for the study of resource allocation in public hospitals, including the optimal budget allocation under the constraint of multi-purpose [23], optimized distributed function system allocation [24], and personnel allocation [25]. Further, it was applied in hospital renovation to evaluate the current environment of hospitals to be renovated and suggest the optimal solution for sustainable renovation [26].…”
Section: Introductionmentioning
confidence: 99%
“…2 Moreover, the effect of hospital competition on treatment choices is highly neglected. If higher competition leads to aggressive treatments by hospitals to attract patients, promoting competition may lead to higher health care costs 1 Spika and Zweifel propose a payment system, which promotes bargaining to hinder upcoding [13]. 2 Mortality rates for Medicare acute myocardial infarction patients are higher in highly concentrated markets [28] and hospital entry leads to improved quality for heart bypass surgery [29].…”
Section: Introductionmentioning
confidence: 99%