What future for the application of incentive-based pricing to healthcare provision?

Roundtable Chair Debate

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Salle A709, Université Paris-Dauphine

The issue of incentive-based pricing - and incentive-based regulation more generally - is an important component of sector-based regulation approaches. The principle is to develop pricing mechanisms that make operators accountable for achieving specific objectives, such as innovation and transformation, quality, cost and investment control, which are aligned with the public policy challenges in the sector in question.

The question of the applicability of incentive-based pricing to healthcare provision is all the more relevant given that the sector is looking for an alternative to activity-based pricing (T2A), which was rolled out as part of the "2007 Hospital Plan" with the aim of moving the healthcare funding model towards a results-based approach. Whilst acknowledging that it has helped to improve the efficiency of the system by remunerating operators on the basis of national tariffs derived from a national scale of costs, it has been criticised by its stakeholders for a number of shortcomings:

  • The drive to increase activity, which has become the main way for healthcare establishments to increase revenue
  • The logic of productivism, which encourages the maximisation of productivity sometimes at the expense of quality
  • The brake it places on the development of practices and the improvement of care pathways, and ultimately on innovation and the transformation of the healthcare system, and on the reduction of hospital-centrism.

The work and experiments (Aubert Mission, Article 51) carried out by the entire sector are designed to take account of new approaches to funding healthcare provision:

  • The quality of patient care
  • The relevance of procedures
  • Broadening the scope of procedures taken into account in the remuneration of healthcare professionals, including in care sequences involving several healthcare professionals.

Against this backdrop, this session will provide an opportunity to discuss the prospects of incentive-based pricing for healthcare institutions, looking at its theoretical foundations, its application methods and mechanisms, and its potential impact on patient care.

The debate will be based on the views of three key players in the field: a consultant with expertise in the regulation of healthcare provision, a director of the main public player in healthcare provision, and a director of one of the leading private-sector groups.

Speakers

The debate was moderate by Karim HATEM  | Senior Partner, Ylios

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