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The Diagnosis Related Group (DRG) system for insurance has now been implemented across all public and personal hospitals in Dubai, the city’s health authority has confirmed.
Announcing the launch in November last year, Dubai Health Authority’s (DHA) newly introduced arrangement – which was delivered to the world beginning February 2020 – is an “internationally vetted billing system” that “uses algorithms to repair base fees for medical procedures”.
The aim of DRG is to streamline payment protocols, “bringing in greater transparency and accountability”.
THE LARGER CONTEXT
DRG reportedly works by accurately calculating the value of procedures for every insured patient separately, using its algorithm of fixed base fees for medical treatments across the emirate.
For example, instead of a insurance company paying a hospital for every specific service, it might instead pay a predetermined amount supported the patient. The quantity would be calculated supported metrics, like patient diagnosis and prognosis.
It is hoped that this may not only encourage hospitals and other healthcare enetities to bundle payments – thus providing a less expensive experience for patients – but also reduce the value of healthcare and insurance premiums within the city over time.
Last year, DHA’s Director General, Humaid Al Qatami told Middle East Insurance Review that “medical costs became a burden to insurers and therefore the establishment of latest controls is required .”
Saleh Al Hashimi, CEO of Dubai insurance Corporation, added that the aim of the DRG was to “ensure quality of service, prevent duplication of health services, reduce medical treatment costs, also as regulate and control the dispensing of medicines.”
The DRG model is already widely adopted across countries including Canada, Singapore, Hong Kong, Australia and New Zealand.
ON THE RECORD
Humaid Al Qatami explained: “[DRG will] increase efficiency, further improve provision of health care and reduce healthcare costs,” also as enhance transparency, and monitor quality across hospitals.
“The implementation of DRG will undoubtedly help both providers and payers, and most significantly , it’ll benefit patients because it will further approach efficiencies in inpatient care,” Dubai insurance Corporation’s Al Hashimi concluded. “It will help improve quality of care across the spectrum and it’ll encourage cost reduction, which can help build a strong and dynamic health sector. DRG will provide evidence-based data which will be wont to device public health policies with an aim to enhance the health and wellbeing of the community.”