China's DRG/DIP Reform: Bridging Medical Service Pricing and Supporting Tech Innovation

The DRG/DIP payment reform has curtailed the rapid expansion of China's public hospitals, shifting focus to quality and efficiency. By December 2023, 71% of 395 BMI pooling areas had embraced this model, aiming for nationwide coverage by 2025.

However, DRG/DIP reform in China uniquely preceded a comprehensive revamp of medical service pricing. Consequently, the core of the next phase of the payment reform will center on refining DRG weights and rates, aligned with supply-side reform efforts.

Additionally, fostering technological innovation is essential in the progression of China's public hospitals, with the development of supportive policies playing a crucial role in the upcoming stages of DRG/DIP implementation.