1. Do discontinuities in marginal reimbursement affect inpatient psychiatric care in Germany?
- Author
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Simon Frey, Tom Stargardt, Clara Pott, and Udo Schneider
- Subjects
Adult ,Hospitals, Psychiatric ,Male ,Mental Health Services ,medicine.medical_specialty ,media_common.quotation_subject ,Economics, Econometrics and Finance (miscellaneous) ,Health care financing ,Hospital behaviour ,Tariff ,Logistic regression ,03 medical and health sciences ,Young Adult ,0302 clinical medicine ,Germany ,medicine ,Humans ,030212 general & internal medicine ,Psychiatry ,Reimbursement ,Marginal payment incentives ,media_common ,Original Paper ,Inpatients ,Health economics ,Government policy ,Prospective Payment System ,030503 health policy & services ,Health Policy ,Length of Stay ,Middle Aged ,Payment ,Mental health care ,Analysis of health care markets (I11) ,Incentive ,Public health (I18) ,Female ,Business ,Prospective payment system ,0305 other medical science ,Public finance ,Regulation - Abstract
This paper examines the behaviour of mental health care providers in response to marginal payment incentives induced by a discontinuous per diem reimbursement schedule with varying tariff rates over the length of stay. The analyses use administrative data on 12,627 cases treated in 82 psychiatric hospitals and wards in Germany. We investigate whether substantial reductions in marginal reimbursement per inpatient day led to strategic discharge behaviour once a certain length of stay threshold is exceeded. The data do not show gaps and bunches at the duration of treatment when marginal reimbursement decreases. Using logistic regression models, we find that providers did not react to discontinuities in marginal reimbursement by significantly reducing inpatient length of stay around the threshold. These findings are robust in terms of different model specifications and subsamples. The results indicate that if regulators aim to set incentives to decrease LOS, this might not be achieved by cuts in reimbursement over LOS. Electronic supplementary material The online version of this article (10.1007/s10198-020-01241-5) contains supplementary material, which is available to authorized users.
- Published
- 2020