ORAHS2024
Abstract Submission

66. Complexity, interface management and unintended consequences of planned interventions illustrated by the DRG financing of Austrian hospitals

Invited abstract in session TB-2: Advances in Health Economics and Healthcare Management, stream Regular talks.

Tuesday, 11:00-12:30
Room: Room S1

Authors (first author is the speaker)

1. Marion Rauner
Faculty of Business, Economics, and Statistics, University of Vienna
2. Margit Sommersguter-Reichmann
Department of Finance, University of Graz
3. Doris Behrens
Department für Wirtschaft und Gesundheit, Donau-Universität Krems

Abstract

This study explores scientific evidence on the repercussions of a large-scale public healthcare intervention in Austria. Diagnosis Related Groups (DRG) funding, implemented in Austria's public hospital inpatient sector in the late 1990s, has created numerous examples of past and ongoing adjustments to fix unintended consequences prompted by intervention-induced behaviour changes. We pay particular attention to interface management, which is essential in a highly fragmented healthcare system like the Austrian one. We track how the fragmentation and complexity of Austria's healthcare system have hindered the success of the planned intervention in a specific part of the healthcare system and caused a negative shock to other healthcare sectors. The paper illustrates that the incentives inherent in Austrian DRG financing set off a cascade of ongoing adjustments. These seemed necessary as the behavioural patterns that emerged to bend and bypass the rules of DRG financing would have nullified the intended effects of the intervention.

Keywords

Status: accepted


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