The Dubai Health Authority (DHA) is set to implement a new health insurance billing and payment system which would lead to fair pricing of healthcare services.
Under the system, payments will be based on patient acuity and hospital resources rather than length of stay, said a statement by the authority.
The new system will be implemented in phases in three years starting in 2017 and ending in 2019, in order for hospitals and clinics to adopt it seamlessly.
Mr Humaid Al Qatami, Chairman of the board and Director General of DHA, announced that the executive council has also approved the implementation of the system which will simplify the billing and payment process.
Mr Al Qatami pointed out that adopting such a clear pricing method allows hospitals and clinics to provide fair prices, and it also allows for investment opportunities based on set standards.
Dr Haidar Al Yousuf, Director of health funding at DHA, said: “The new system also adopts a statistical system of classifying any inpatient stay into groups for the purposes of payment.”
The classification system divides possible diagnoses for the purpose of reimbursement with built-in incentives for higher quality providers.
“It also has a medical inflation indicator that caters to increases in cost for the medical sector in collaboration with the Dubai Statistic Centre, which can produce indicators of inflation particular to health,” he added.
A pilot phase with shadow billing will begin in 2017 for hospital accommodation only, and will last till the end of 2017. At the beginning of 2018, all services will be included and the pilot phase for outpatient clinics will kick off, so that in 2019 the system will be implemented in full effect, DHA said.
The new system is particularly significant given that Dubai has fully implemented mandatory health insurance for employees and their dependents.