Related Experiment Videos
Cost containment and physician payment methods in The Netherlands
1School of Health Administration and Policy, Arizona State University, Tempe 85287.
Summary
The Netherlands uses negotiated agreements between insurers and physician groups to control healthcare costs. This system, involving fee setting and practice monitoring, offers potential lessons for US healthcare systems like Medicare and Health Maintenance Organizations (HMOs).
Area of Science:
- Health economics
- Healthcare policy
- Physician reimbursement
Background:
- Cost containment is a major challenge in healthcare systems worldwide.
- Negotiated agreements between payers and providers are one strategy for managing healthcare expenditures.
- The Dutch healthcare system has implemented a unique negotiating structure between insurers and physician associations.
Purpose of the Study:
- To analyze the Dutch healthcare cost containment system based on negotiated agreements.
- To identify transferable elements of the Dutch model for US healthcare organizations.
- To evaluate the effectiveness of standardized fees and volume monitoring compared to global expenditure controls.
Main Methods:
- Analysis of the Dutch healthcare negotiating system.
- Examination of fee-for-service and capitation rate determination.
- Review of physician practice pattern monitoring for volume control.
Main Results:
- Negotiated agreements on remuneration, practice costs, and size are central to Dutch cost containment.
- Physician practice patterns are monitored to manage healthcare volume.
- Selected aspects of the Dutch negotiating structure show potential applicability to Medicare and HMOs.
Conclusions:
- The Dutch model offers insights into negotiating equitable physician reimbursement and clarifying negotiation issues.
- Standardized fees and volume monitoring may be less effective than global expenditure controls for long-term cost management.