Korea and UK Incentive Systems on DRG-Based Payment Regime
Korea and UK have the incentive system under the DRG–based payment system, Vulnerable Zone Incentive and Market Forces Factors, to regulate the unavoidable costs from their geographical location differences. In UK, Market Forces Factors make providers use their resources more efficiently by paying the unavoidable costs occurred regardless of their effort. This is associated with reducing of patients unfair treatment services which by difference of location. Korea have also incentive system, Vulnerable Zone Incentive, to control the unavoidable costs from the location differences. However, Korean incentive systems are facing the efficiency issues are related to the public loss compensation in pilot project and the stakeholder problem. This investigation focuses on policy implications how to design the incentive of the DRG payment reform.
Keywords- DRG Payment reform, Unavoidable Cost, Inefficiency.