According to the city’s health authority, The Diagnosis Related Group (DRG) insurance scheme has now been introduced in all public and private hospitals in Dubai.
The Dubai Health Authority’s (DHA) recently announced arrangement – which was delivered to the world in the beginning of February 2020 – is an “internationally vetted billing system” that “uses algorithms to repair base fees for medical procedures.”
DRG’s goal is “bringing in greater transparency and accountability” by simplifying payment methods.
The actual content
DRG is said to work by employing an algorithm of fixed base costs for medical services across the emirate to properly calculate the value of procedures for each covered patient individually. For example, instead of paying the hospital for each individual service, an insurance company can pay a fixed amount to support the patient. The number would be determined using parameters such as the diagnosis and prognosis of the patient. It is intended that apart from just encourage hospitals and other healthcare entities to bundle payments which would result to an affordable experience for patients, it will also lower the cost of insurance and healthcare premiums in the city across time.
DHA Director General Humaid Al Qatami told Middle East Insurance Review last year that medical costs have turned to a burden to insurers, and the establishment of new controls were essential. According to Saleh Al Hashimi, the CEO of Dubai Insurance Corporation, the DRG aims to ensure quality of service, minimise duplication of health services, lower medical treatment costs, and monitor and control pharmaceutical distribution. Canada, Singapore, Hong Kong, Australia, and New Zealand are among the countries that have embraced the DRG model.
On the record
according to Humaid Al Qatami, [DRG] will increase efficiency, significantly improve the health care provision, and minimises the healthcare expenses, along with improving transparency and monitoring quality across hospitals. “The introduction of DRG will undoubtedly help both providers and payers, but most significantly, it will benefit patients by advancing inpatient care efficiencies,” stated Al Hashimi of Dubai Insurance Corporation. “It will help to improve the overall care quality and drive cost-cutting, all of which will contribute to the growth of strong and vibrant health industry. DRG will also give evidence-based data for the development of public health programs focused on promoting the health and well-being of the population ” he added.
