Dubai launches new health insurance payment system

Dubai Health Authority (DHA) has announced a new health insurance payment system basing payment on patient care required and hospital resources rather than length of stay.

The authority said the new system would improve transparency and quality of healthcare services in Dubai.

Humaid Al Qatami, chairman of DHA, said it would allow hospitals and clinics to provide fair prices and improve investment opportunities based on set standards.

The system involves the adoption of a statistical system of classifying inpatient stays into groups for the purpose of payment.

“The DRG classification system divides possible diagnoses for the purpose of reimbursement with built in incentives for higher quality providers,” according to a DHA statement.

Other aspects include a medical inflation indicator that caters to increases in cost for the medical sector in collaboration with Dubai Statistic Center.

The new system will be implemented in the next three years starting in 2017 and ending in 2019.

A pilot phase with shadow billing will begin next year for hospital accommodation only and will last until the end of 2017.

From 2018 all services will be included in the pilot phase for outpatient clinics and in 2019 the system will be implemented in full.