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DUBAI, United Arab Emirates, Aug. 1, 2017 /PRNewswire/ -- Healthcare providers in Dubai must prepare for the imminent shift to international refined diagnosis-related group (IR DRG) system or be caught off-guard when pricing structures change in 2018. The new structure will completely transform insurance companies' payment approach to healthcare providers. It aims to eliminate over prescription by moving the burden of cost to the provider itself. In short, providers will be paid a fixed base rate, multiplied by a factor for each DRG code.
"To make their margins, healthcare providers now have to work backwards from the price they will get paid. They will also need to firmly control their costing for each procedure. Failure to do so will result in lower or no margins. Moreover, this must be done without compromising the quality of care and outcome," said Frost & Sullivan Healthcare and Life Sciences Senior Consultant Vivek Shukla.
Frost & Sullivan's Healthcare and Life Sciences team, with its expansive coverage and expertise of the global healthcare industry, finds that even the most efficient hospitals will have areas of improvement when it comes to overall cost optimization. To learn more about IR DRG impact on healthcare providers in Dubai, register for a Growth Strategy Dialogue, or schedule a free interactive briefing with Frost & Sullivan's thought leaders, click here or please email Anita Chandoke, Corporate Communications, at firstname.lastname@example.org.
As fixed prices replace fee-for-service, and price-based costing substitute cost-based pricing, providers must prepare early to garner maximum benefit. Healthcare providers that are clear about cost structures and effectively manage without giving up on quality will gain the competitive edge over contemporaries. Healthier margins mean higher capacity to invest in better doctors and staff, brand building, and equipment. This will enhance the perception, quality and outcomes of hospitals, giving them an even higher strategic ground.
To comply with the new insurance environment and stay profitable when the prices get fixed for various procedures, healthcare providers must:
Overall, transitioning to IR DRG will require months of careful preparation. As such, market opportunities will emerge around solutions to support hospitals in cost reduction and revenue cycle management.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
Media Contact:Anita Chandhoke
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Health care (or healthcare) is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, a...