The fee-for-service system is used as the main payment system for health care providers in Korea. It has been argued that it can't reflect differences in the medical practice costs across regions because the fee schedule is calculated based on the average cost. So, some researchers and providers have disputed that there is need for adopting geographic practice cost index (GPCI) used in the United States for the Medicare program for the elderly to the fee-for-service payment system. This study performed to identify whether the difference in the practice costs among regions exists or not and to examine the feasibility of applying GPCI to Korea payment system. For this purpose, we calculated modified-GPCI and examined considerations to introduce GPCI in Korea. First we identified available data to calculate GPCI. Second, we made applicable GPCI equations to Korea payment system and computed it based on four types of regions (metropolitan, urban, suburban, and rural). We also categorize the regions based on the availability of the medical resources and the capability of utilizing them. As a result, we found that there wasn't any significant difference in the GPCI by regional types in general, but the indices of rural areas (0.91–0.98) was relatively low compared to the indices of other regions (0.96–1.07). Considering the need to use GPCI floor, the pros and cons of using GPCI, and the concern of the regional imbalance of resources, the introduction of GPCI needs to be carefully considered.
Aged ; Fee Schedules ; Fee-for-Service Plans ; Health Personnel ; Humans ; Korea ; Medicare ; Relative Value Scales ; United States

The resource-based relative value scale (RBRVS) was introduced in Korea as a payment system in 2001. However, the health insurance fee schedule had many problems. Unbalanced insurance fee schedules still occur, and the relative value was not divided between physicians' work and practice expenses. Furthermore, malpractice fees were not included in the total RBRVS. The first refinement project of the health insurance relative value scales was conducted in 2003 and the second project started in 2010. In the first project, final relative values were calculated under budget neutrality by medical departments, and imbalances within the departments were resolved. However, imbalances still existed between departments. In the second project, final relative values were classified and computed by the type of medical treatment. The final RBRVS has been applied step by step since 2017 and the imbalance problem of the insurance fee schedule has been partially resolved. The government recently announced strengthening the plan for health insurance coverage. The current coverage rate for total medical costs by national health insurance is 63%. The purpose of this plan was to increase the coverage rate by up to 70%. The government has suggested detailed plans but there remain many controversial issues and limitations with regard to the practical aspects. Thus, further research and suggestions are needed.
Budgets ; Fee Schedules* ; Fees and Charges* ; Insurance ; Insurance Benefits ; Insurance, Health* ; Insurance, Health, Reimbursement ; Korea ; Malpractice ; National Health Programs ; Relative Value Scales

The recent outbreak of Middle East respiratory syndrome coronavirus (MERS-CoV) infections in South Korea in May 2015 revealed that the Korean healthcare system and hospitals are highly vulnerable to hospital-spread infections. In a short period of time, MERS-CoV infection spread widely across Korea due to the unique characteristics of the Korean healthcare system including 1) hospitals with limited infection control capabilities, 2) a heavy dependency on private caregivers due to a nursing shortage, 3) emergency department overcrowding, and 4) healthcare-related patient behaviour such as hospital shopping. To prevent future outbreaks of emerging infectious diseases similar to MERS-CoV, the Korean healthcare system should be reformed and healthcare-related patient behaviour must change. To improve the performance of hospital infection control, the National Health Insurance service should pay more for hospital infection control services and cover private patient rooms when medically necessary, including for infectious disease patients. To reduce risks of hospital infection related to private caregiving, the nurse staffing level should be increased and hospitals should take full responsibility for inpatient nursing care. To reduce hospital shopping, the National Health Insurance service should introduce a differential fee schedule which pays more when primary care providers care for patients with common conditions and tertiary care providers care for patients with severe conditions. To incentivize patients for appropriate health care use, lower patient out-of-pocket payments should be combined with a differential provider fee schedule.
Caregivers ; Communicable Diseases ; Communicable Diseases, Emerging ; Coronavirus ; Cross Infection* ; Delivery of Health Care* ; Disease Outbreaks ; Emergency Service, Hospital ; Fee Schedules ; Hospital Shops ; Humans ; Infection Control ; Inpatients ; Korea ; Middle East* ; National Health Programs ; Nursing ; Nursing Care ; Patients' Rooms ; Primary Health Care ; Tertiary Healthcare

BACKGROUND: Leukocyte reduced (LR) and irradiated (IR) blood components are used to prevent immunological transfusion-related adverse reactions. However, so far, reports on the usage of LR or IR blood components in Korea are scarce. METHODS: Data from January, 2007 to December, 2013 provided by the Health Insurance Review and Assessment Service of Korea were analyzed. Disease categories of the patients were classified according to the Korean Standard Classification of Disease. RESULTS: In 2013, 26.7% of total transfused blood components were leukocyte reduced and an increase of 5.3% compared to 2007. The proportion of IR components increased from 21.4% in 2007 to 27.9% in 2013. The percentage of LR (IR) blood components for RBCs, platelets, and SDPs was 15.4% (14.7%), 35.1% (38.8%), and 75.2% (80.1%), respectively, in 2013. In particular, the percentage of IR FFPs units increased gradually over the years, from 11.2% in 2007 to 22.7% in 2013. LR and IR components were used mainly in hemato-oncology patients but the proportion showed a downward trend. Due to aging of the society, transfusion of LR and IR components has inclined trends in the 70's or more. CONCLUSION: Although the transfusion rate of both LR and IR blood component is increasing, it is still remarkably lower than that in developed countries. Therefore, LR and IR blood components should be used more extensively. For this, reimbursement criteria for National Health Insurance for these blood components should be extended and the fee schedule for LR and IR blood components should be adjusted to reflect clinical practice and patient need.
Aging ; Classification ; Developed Countries ; Fee Schedules ; Humans ; Insurance, Health ; Korea* ; Leukocytes* ; National Health Programs

BACKGROUND: The purpose of this study is to analyze the cost for the denture treatment in accordance with the government's plan to expand the National Health Insurance coverage for dental prothesis from July 1, 2012. METHODS: We developed the draft of classification of the treatment activities based on the existing researches and expert's review and finalized the standard procedures through confirming by Korean Dental Association. We also made the list of input at each stage of treatments. We conducted survey of 100 dental clinics via post from April 4 to May 20 in 2011 and 37 clinics took part in the survey. The unit of cost calculation is the process from the first visit for denture treatment to setting of denture and adjustment. The manufacturing process performed by dental technician was not included in the cost analysis. RESULTS: The process for the complete denture treatment was classified with 10 stages. The partial denture treatment was classified with 8 stages. The treatment time per each denture is about 5.6 hours for complete dentures and about 6.6 hours for partial dentures. The treatment cost were from 591,108 won to 643,913 won for complete denture and from 670,219 won to 738,840 won for partial denture in 2011, depending on the location, type of the clinics and the types of physician's income. CONCLUSION: This study shows the example of cost analysis for the treatment to set the fee schedule. Measures to get representative and accurate information need to be made.
Classification ; Costs and Cost Analysis* ; Dental Clinics* ; Dental Technicians ; Denture, Complete ; Denture, Partial ; Dentures* ; Fee Schedules ; Health Care Costs ; Humans ; Korea* ; National Health Programs

The question has been raised whether the medical fee schedule is very low in Korea. However, studies that empirically address this matter on a national scale are rare. This study attempted to determine the level of Korea's medical fees for caesarean section (C-section), cataract, and appendectomy surgeries by comparing and analyzing them with other Organization for Economic Cooperation and Development (OECD) countries' medical cost data obtained from other studies. There are two ways to compare the level of medical fees: one is a direct comparison, which obtains each country's medical fee schedule and compares them with each other. Another is indirect comparison, a method which compares data such as physician income. For direct comparison, fees were calculated using data provided by the OECD and Health Insurance Review and Assessment. For indirect comparison by physician income, data obtained from Korea Employment Information Services were used to represent Korean physician income. When compared with other OECD countries, the results suggest that, overall, the Korean fee schedule could be low, based on the fees for C-section, cataract, and appendectomy surgeries. The study results also confirm that Korean physicians' average earnings ranked relatively low among OECD countries. These results are meaningful in that they empirically support the contention that Korean medical fees could be low. In addition, under what is known as national health insurance, in which the medical fee schedule is determined by a single payer, an empirical analysis on medical fee levels, as in this study, has substantial political implications because it may be utilized for medical fee schedule negotiation in the near future. An attempt to directly research fees and the range of services of OECD countries is still needed in order to provide more established data.
Appendectomy ; Appointments and Schedules ; Cataract ; Cesarean Section ; Employment ; Fee Schedules ; Fees and Charges ; Fees, Medical ; Female ; Information Services ; Insurance, Health ; Korea ; National Health Programs ; Negotiating ; Pregnancy

PURPOSE: This study aims to evaluate the cost-effectiveness of two aromatase inhibitors for the adjuvant treatment of women with postmenopausal hormone receptor positive early breast cancer, and to find the most reasonable treatment option when the population is stratified by the nodal status. METHODS: A Markov model was developed with defining six Markov states based on breast cancer progression. The annual probabilities of recurrence by adjuvant treatment (anastrozole, letrozole, and tamoxifen) were estimated from the published studies in the overall population and in the node negative and node positive groups. The costs of the defined breast cancer events were measured by the micro-costing method based on the 2009 National Health Insurance Fee Schedule and the third Clinical Guideline of Breast Cancer Treatment. Anastrozole and letrozole were compared with tamoxifen respectively, using the same Markov model. The incremental cost-effectiveness ratios for the overall population and each subgroup were estimated. RESULTS: Anastrozole was more effective and costly than tamoxifen with anastrozole costing an additional Korean Won (KRW) 22,461,689 per quality-adjusted life year (QALY). Letrozole showed a similar incremental cost of KRW 21,004,142 per QALY. In the node negative group, anastrozole was the most cost-effective with an incremental cost of KRW 19,717,770 per QALY, while letrozole was the most cost-effective with an incremental cost of KRW 8,150,512 per QALY for the node positive group. The sensitivity analysis showed that these results were robust. CONCLUSION: The subgroup analysis clearly demonstrated which treatment was superior among the aromatase inhibitors in terms of the cost-effectiveness. Such a finding was not confirmed for the case of the overall population. The implication of this study is that the decision makers should be careful when generalizing the cost-effectiveness results. The stratified analysis in this context may help reach a reasonable decision for allocating medical resources.
Aromatase Inhibitors ; Breast ; Breast Neoplasms ; Cost-Benefit Analysis ; Costs and Cost Analysis ; Fee Schedules ; Female ; Humans ; National Health Programs ; Nitriles ; Quality-Adjusted Life Years ; Recurrence ; Tamoxifen ; Triazoles

PURPOSE: To examine factors affecting long-term care hospital patients' intention of transfer to a nursing home. METHOD: A questionnaire survey was conducted in Aug. 2007 that included 655 patients from 49 long-term care hospitals. The survey aimed to assess the patients' health status, family status, cost and intention of transfer to a nursing home. Institutional characteristics were analyzed from the nationwide database of Health Insurance Review & Assessment Service. The affecting factors were examined by employing chi-square test and logistic regression using SAS 8.2. RESULT: Of the subjects, 32.4% had intention of transfer to a nursing home. The intention of transfer to a nursing home was affected by moderate or severe pain, living together with the primary carer, high cost uncovered by insurance, and recognition of nursing home. CONCLUSION: For appropriate service utilization, a higher level of care is needed to satisfy patients at nursing homes and a balanced fee schedule is needed between long term care hospitals and nursing homes. It is desirable to encourage transfer to a nursing home at which nurses support patients and their families by giving information, coordination, and to make efforts to establish a reference system.
Caregivers ; Fee Schedules ; Humans ; Insurance ; Insurance, Health ; Intention* ; Logistic Models ; Long-Term Care* ; Nursing Homes* ; Surveys and Questionnaires

PURPOSE: The objective of our study was to figure out costs of nursing services in ICU based on the PCS in order to determine an appropriate nursing fee schedule. METHOD: Data was collected from 2 hospitals from April 15-16 to April 22-23, 2003. The costs of nursing services in the ICU were analyzed by nursing time based on the nursing intensity. The inpatients in the ICU were classified by a PCS tool developed by the Korean Clinical Nurses Association(2000). RESULTS: The distribution of patients by PCS in the ICU ranged from class IV to Class VI. The higher PCS in ICU consumed more nursing time. As a result, the higher nursing intensity, the more the daily average nursing costs in the ICU. CONCLUSION: Our study provides evidence to refine the current nursing fee schedule that does not differentiate from the volume of nursing services based on nursing time. We strongly recommend that the current reimbursement system for nursing services should be applied not only to the general nursing units but also to the ICU or other special nursing units.
Costs and Cost Analysis ; *Fee Schedules ; Humans ; Inpatients/*classification ; Intensive Care Units/*economics ; Nursing Service, Hospital/*economics ; Prospective Payment System ; Time Factors

PURPOSE: To solve the problems of overcrowding in the emergency department (ED), the Korean government adopted the new emergency fee schedule into National Health Institute (NHI) as of April 2000. The purpose of this system was to determine non-emergent patients from visiting the ED. However, there have been no studies regarding the decision criteria for what constitute an 'emergency'. For that reason, we compared the concordance between the criteria used at the Asan Medical Center since 1998 to designate an emergency with those used by the government to improve the system. METHODS: We performed a retrospective study by collecting the data from 107,097 patients who visited Asan Medical Center from January 1st, 2001, to December 21st, 2002. The criteria on emergency in NHI consist of 36 items, while the criteria at Asan Medical Center are decided by emergency physician and nurse when the patient arrived at the ED. Based on laboratory and radiologic data, a secondary decision is made when the patient is moved from triage to the adult resuscitation room or transferred to an other medical center or discharged. RESULTS: The number of patients who were classified as emergent by both criteria was 22,452 (21%), the number of patients who were classified as non-emergent by both criteria was 39,657 (37%), and the number of patients who were classified in the same way by both criteria was 62,109 (58%). The number of patients for whom the two sets of criteria gave different classification was 44,988 (42%). The Kappa value was 0.138 (p < 0.005). CONCILUSION: There was high discordance between the criteria used by Asan Medical Center and NHI. Further studies and improvements are required.
Adult ; Chungcheongnam-do* ; Classification ; Emergencies ; Emergency Service, Hospital ; Fee Schedules ; Fees and Charges ; Humans ; National Health Programs* ; Resuscitation ; Retrospective Studies ; Triage