Title: DRG-based market-orientation and integrated healthcare in Austria: developing an effective product portfolio

Authors: Victoria Hob, Magdalena Thoni, Roland Staudinger

Addresses: Institute for Applied Systems Research and Development, UMIT – University for Health Sciences, Medical Informatics and Technology, Eduard Wallnofer Zentrum 1, 6060 Hall in Tirol, Austria. ' Institute for Applied Systems Research and Development, UMIT – University for Health Sciences, Medical Informatics and Technology, Eduard Wallnofer Zentrum 1, 6060 Hall in Tirol, Austria. ' Institute for Applied Systems Research and Development, UMIT – University for Health Sciences, Medical Informatics and Technology, Eduard Wallnofer Zentrum 1, 6060 Hall in Tirol, Austria

Abstract: To reduce costs in the Austrian hospital sector, a prospective Diagnosis-Related Group (DRG)-based payment system was implemented in 1997 and a structure similar to managed care (|integrated healthcare|) will be established in the future. The payment system aims to create incentives for the hospital sector to focus on the efficient use of resources. The implementation of integrated healthcare, which is also expected to lead to improved efficiency, is still in progress in that the legal background has yet to be clarified. The new payment system reinforces market-orientated structures. Integrated healthcare is based on a system of centrally planned provider structures. This paper focuses on synergies that arise by combining the two instruments. Furthermore, a product portfolio matrix is derived to position hospitals within the different medical areas.

Keywords: diagnosis-related groups; DRG; managed care; integrated healthcare; strategy development; Austria; payment system; incentives; resource use; efficiency; product portfolio matrix.

DOI: 10.1504/IJBHR.2009.024226

International Journal of Behavioural and Healthcare Research, 2009 Vol.1 No.2, pp.143 - 159

Published online: 30 Mar 2009 *

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