China will launch a pilot program of diagnosis-related groups (DRGs), a patient classification to standardize medical insurance payment, in 30 cities. The pilot cities, including Beijing, Tianjin and Handan, are set to start the new payment mode in 2021 before a simulated run in 2020.
Patients will be classified into DRGs with similar clinical symptoms and resource costs on the basis of their age, gender, length of stay and clinical diagnosis. Medical fees and insurance payments will thus be based on DRG classification instead of specific patients.
Under the traditional payment model where patients pay for the medical examinations or treatment services before having the fees reimbursed, doctors may provide unnecessary medical services, which cost more and lead to higher medical costs.