How does the dual policy—the C-DRG-based reimbursement system and subsidy policy for appropriate Traditional Chinese Medicine (TCM) techniques—influence physicians’ choice of disease treatment methods in TCM hospitals?

Jin Zhang (), Junfeng Liu (), Lingfei Qu () and Zihao Duan ()
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Jin Zhang: Wuhan University
Junfeng Liu: Wuhan University
Lingfei Qu: Wuhan University
Zihao Duan: Wuhan University

Health Economics Review, 2025, vol. 15, issue 1, 1-19

Abstract: Abstract Background This study investigates the impact of the diagnosis-related group (DRG) reimbursement system and subsidy policies on the treatment methods of traditional Chinese medicine (TCM) orthopaedic physicians. The objective is to determine the optimal subsidy amount to maximize the number of treated patients. Methods Using Evans’ profit maximization theory, the study examines the intrinsic motivations behind physicians’ behaviours and their influence on the medical market. A discontinuous time series analysis evaluates the effects of the C-DRG-based reimbursement system and subsidies on the number of treated inpatients and inpatient expenses in TCM orthopaedics. Results The expanded implementation of the C-DRG-based reimbursement system substantially boosted both orthopaedic surgery and TCM technology case volumes, with 55 additional orthopaedic procedures and 200 extra TCM interventions recorded (p

Keywords: Diagnosis-Related Group (DRG) payment system; Appropriate Traditional Chinese Medicine (TCM) techniques; Interrupted time series analysis (ITS); Policy impact; Optimal subsidy expenses value (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s13561-025-00643-6

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