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Effects of diagnosis-related group payment system on appendectomy outcomes

 Tae Hyun Kim  ;  Eun-Cheol Park  ;  Sung-In Jang  ;  Suk-Yong Jang  ;  Sang Ah Lee  ;  Jae Woo Choi 
 JOURNAL OF SURGICAL RESEARCH, Vol.206(2) : 347-354, 2016 
Journal Title
Issue Date
Adult ; Aged ; Aged, 80 and over ; Appendectomy*/economics ; Databases, Factual ; Diagnosis-Related Groups* ; Female ; Health Care Costs/statistics & numerical data ; Health Policy ; Humans ; Length of Stay/economics ; Length of Stay/statistics & numerical data ; Male ; Middle Aged ; Outcome Assessment (Health Care) ; Patient Readmission/statistics & numerical data ; Republic of Korea
Appendectomy ; Costs ; Diagnosis-related group ; Length of stay ; Readmission ; Spillover
BACKGROUND: The voluntary diagnosis-related group (DRG) payment system was introduced in 2002. Since July 2013, the Korean government has mandated DRG participation for all hospitals. The main purpose of this study was to examine the effects of mandatory DRG participation on various outcome metrics for appendectomy patients. MATERIALS AND METHODS: We collected inpatient DRG data for 280,062 appendectomy patients between 2007 and 2014 using the Health Insurance Review and Assessment database. We examined patient outcome metrics such as length of stay (LOS), total medical cost, spillover, and readmission rate, according to hospital size. RESULTS: As a result of DRG participation, the average LOS for patients decreased (adjusted ratio: 0.83 [large hospitals], 0.83 [small hospitals]; 95% confidence interval [CI]: 0.82-0.84, 0.82-0.84), the total medical costs of patients increased (adjusted ratio: 1.23 [large hospitals], 1.35 [small hospitals]; 95% CI: 1.22-1.24, 1.34-1.36), the spillover of patients increased (adjusted ratio: 2.10 [large hospitals], 2.30 [small hospitals]; 95% CI: 2.03-2.18, 2.16-2.45), and the readmission rates of appendectomy patients decreased (adjusted ratio: 0.85 [large hospitals], 0.49 [small hospitals]; 95% CI: 0.77-0.94, 0.42-0.57). CONCLUSIONS: The mandatory implementation of the DRG payment system in South Korea has led to significant reductions in LOS and readmission rates for appendectomy patients. However, any resulting expansion of outpatient services may result in unnecessary resource usage rather than improving medical quality. Policy makers should consider the various implications reflected by these results when considering DRGs for other diseases.
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4. Graduate School of Public Health (보건대학원) > Graduate School of Public Health (보건대학원) > 1. Journal Papers
1. College of Medicine (의과대학) > Dept. of Preventive Medicine and Public Health (예방의학교실) > 1. Journal Papers
Yonsei Authors
Kim, Tae Hyun(김태현) ORCID logo https://orcid.org/0000-0003-1053-8958
Park, Eun-Cheol(박은철) ORCID logo https://orcid.org/0000-0002-2306-5398
Jang, Sung In(장성인) ORCID logo https://orcid.org/0000-0002-0760-2878
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