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See Latest ArticlesDRG prospective payment systems: refine or not refine
Health Economics, 10/02/09
Hafsteinsdottir EJG et al. – The authors show that when tariffs are refined, the provider has always an incentive to overprovide the surgical treatment. If the tariff is not refined, the hospital underprovides the surgical treatment (and overprovides the medical treatment) if the degree of altruism is sufficiently low compared with the opportunity cost of public funds.
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