Related Experiment Video
Updated: May 20, 2026

Inverse Probability of Treatment Weighting (Propensity Score) using the Military Health System Data Repository and National Death Index
Published on: January 8, 2020
[Remuneration distribution - should morbidity-dependent overall remuneration also be distributed after adjustments
A Walendzik1, M Trottmann, R Leonhardt
1Alfried Krupp von Bohlen und Halbach-Stiftungslehrstuhl für Medizinmanagement der Universität Duisburg-Essen. Anke.Walendzik@medman.uni-due.de
German healthcare reform shifted morbidity risk to health funds but not to physician groups. Diagnosis-based risk adjustment in outpatient care did not improve expenditure prediction at the practice level compared to age-based methods.
Area of Science:
- Health economics
- Medical policy
- Public health
Context:
- The 2009 German healthcare reform transferred morbidity risk to health funds.
- Failure to adjust remuneration for physician groups can distort budgets and incentivize risk selection.
Purpose:
- Analyze the German outpatient care remuneration system regarding morbidity adjustment.
- Develop and present a risk adjustment model for predicting individual healthcare expenditures.
- Explore conditions for successful implementation of diagnosis-based risk adjustment.
Summary:
- A risk adjustment model was developed using diagnostic and pharmaceutical data for half a million individuals.
- The model predicts individual expenditures and can allocate care burden across physician groups.
- Simulations showed diagnosis-based risk adjustment did not outperform current age-related calculations for predicting practice-level expenditures.
Impact:
- Morbidity-based risk adjustment can enhance distributional justice and incentivize appropriate care in German outpatient medical services.
- Limitations exist, particularly with lump-sum payments for certain physician groups.
- The findings inform potential transformations of collective remuneration systems to better align with patient needs and physician incentives.
Related Concept Videos
Regression Toward the Mean
Compensation Mechanisms
Respiratory Compensation
This mechanism addresses metabolic-induced pH imbalances by adjusting breathing rates. Respiratory compensation begins within minutes of detecting a pH...
Drug Dosing in Renal Diseases: Dose Adjustments Based on Drug Clearance and Elimination Rate Constant
Effect of Hepatic Disease on Pharmacokinetics: Dose Adjustments Due to Hepatic Impairment
Dosage Regimen: Individualization
Dosage Regimens: Designs and Approaches