A New Case-Mix Classification Method for Medical Insurance Payment

Hongliang Liu, Jinpeng Tan, Kyongson Jon and Wensheng Zhu
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Hongliang Liu: Key Laboratory for Applied Statistics of MOE, School of Mathematics and Statistics, Northeast Normal University, Changchun 130024, China
Jinpeng Tan: Key Laboratory for Applied Statistics of MOE, School of Mathematics and Statistics, Northeast Normal University, Changchun 130024, China
Kyongson Jon: Key Laboratory for Applied Statistics of MOE, School of Mathematics and Statistics, Northeast Normal University, Changchun 130024, China
Wensheng Zhu: Key Laboratory for Applied Statistics of MOE, School of Mathematics and Statistics, Northeast Normal University, Changchun 130024, China

Mathematics, 2022, vol. 10, issue 10, 1-15

Abstract: Rapidly rising medical expenses can be controlled by a well-designed medical insurance payment system with the ability to ensure the stability and development of medical insurance funds. At present, China is in the stage of exploring the reform of the medical insurance payment system. One of the significant tasks is to establish an appropriate reimbursement model for disease treatment expenses, so as to meet the needs of patients for medical services. In this paper, we propose a case-mixed decision tree method that considers the homogeneity within the same case subgroup as well as the heterogeneity between different case subgroups. The optimal case mix is determined by maximizing the inter-group difference and minimizing the intra-group difference. In order to handle the instability of the tree-based method with a small amount of data, we propose a multi-model ensemble decision tree method. This method first extracts and merges the inherent rules of the data by the stacking-based ensemble learning method, then generates a new sample set by aggregating the original data with the additional samples obtained by applying these rules, and finally trains the case-mix decision tree with the augmented dataset. The proposed method ensures the interpretability of the grouping rules and the stability of the grouping at the same time. The experimental results on real-world data demonstrate that our case-mix method can provide reasonable medical insurance payment standards and the appropriate medical insurance compensation payment for different patient groups.

Keywords: diagnosis-related groups; case-mix; medical expense; decision tree; ensemble learning (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
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