The Impact of payment reforms on quality and efficiency in China | Duke Kunshan University
The Impact of payment reforms on quality and efficiency in China
Qingyue Meng

Professor Qingyue Meng, School of Public Health, Peking University

Apr 12th 2016 12:00 to 13:00
Room 1079, Academic Building

Summary of Talk:

In this prospective study, conducted in China where providers have traditionally been paid fee-for-service, and where drug spending is high and irrational drug prescribing common, township health centers in two counties were assigned to two groups: in one fee-for-service was replaced by a capitated global budget (CGB); in the other by a mix of CGB and pay-for-performance. In the latter, 20% of the CGB was withheld each quarter, with the amount returned depending on points deducted for failure to meet performance targets. Outcomes studied included indicators of rational drug prescribing and prescription cost. Impacts were assessed using differences-in-differences, because political interference led to non-random assignment across the two groups. The combination of capitated global budget and pay-for-performance reduced irrational prescribing substantially relative to capitated global budget but only in the county that started above the penalty targets. Endline rates were still appreciable, however, and no effects were found in either county on out-of-pocket spending.


Brief Biography:

MENG, Qingyue, MD, PhD, Professor in Health Economics and Policy, is Dean of Peking University School of Public Health, and the Executive Director of Peking University China Center for Health Development Studies (CCHDS). His research interests include health financing policy and health provider payment systems. He is Member of the Advisory Committee on Public Policy to China National Health and Family Planning Commission, and Board Member of the Health Systems Global (HSG) representing the Asia and Pacific Region.