Author(s)

Li Li ^1,2, Zhenguo Wang ², Yuwen Cui ²

Affiliation(s)

¹ School of Public Health, Shandong University, Jinan City, Shandong Province, China
² Nanshan People's Hospital, Jinan City, Shandong Province, China

Corresponding Author

Zhenguo Wang

ABSTRACT

In recent years, Diagnosis-Related Groups (DRG) payment has become one of the effective strategies for China to mitigate the rapid growth of medical expenses. Based on the principal-agent theory and the theory of incentive compatibility, this paper conducts an in-depth analysis of the impact of DRG payment on the prescription behavior of physicians in public hospitals in China. The paper posits that the DRG payment system can have a significant influence on physicians’ prescription behavior, and this influence exhibits pronounced differences across hospitals of varying levels. Therefore, the DRG payment system plays a crucial role in the rational allocation of medical resources in China.

KEYWORDS

DRG payment; Public Hospitals; Prescribing Behavior; Principal-Agent Theory

CITE THIS PAPER

Li Li, Zhenguo Wang, Yuwen Cui, Theoretical Analysis of the Impact of DRG Payment on Prescription Behaviors of Physicians in Chinese Public Hospitals. Social Security and Administration Management (2024) Vol. 5: 34-40. DOI: http://dx.doi.org/10.23977/socsam.2024.050306.

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