NETHERLANDS

Public — Ministry of Health Netherlands / Nederlandse Zorgautoriteit

Development and Implementation of the Dutch DRG System

PROJECT DETAILS

Case Study.pdf

CLIENT

Ministry of Health Netherlands / Nederlandse Zorgautoriteit

REGION

NETHERLANDS

YEAR

2006–2010

SERVICE AREAS

Funding & Reform

Governance

We were not brought in to consult.

We were brought in to build from the inside.

Dr Anna van Poucke · Founder, GHT

01

Situation

In 2002 a DRG system was introduced in the Netherlands that proved far too complicated — with over 30,000 DRGs, no uniform diagnosis classification, vulnerability to overcoding and significant administrative burden for providers. The system was fundamentally flawed and required complete redesign while maintaining stakeholder confidence and political support

02

Challenge

All stakeholder representatives wanted a fundamentally revised system but simultaneously resisted giving up their influence on its design — creating contradictory design criteria. The system needed to meet international standards while retaining Dutch-specific elements, within a tight government timeline.

03

Action

1

Programme transformation

Transformation of the maintenance organisation into a structural development, design and implementation organisation.

2

Stakeholder management & design criteria

Setting up international design criteria and aligning Ministry of Health and Dutch Health Authority through strong stakeholder management.

3

R&D lab

Setting up the R&D lab for the DRG system including diagnosis and activity classification, costing lab and time/material simulation lab.

4

Technology implementation

Management of technology implementation at provider and payor side, including political stakeholder management for decision and implementation process.

04

Result

New DRG system developed and accepted by all national stakeholder organisations — implemented and still the national reimbursement vehicle after 14 years

01

New DRG system based on ICD-10 and a single activity-based costing system developed and accepted by all stakeholders.

02

System implemented across all providers and payors nationwide.

03

Stable basis for Dutch healthcare costing for over 14 years with no major implementation issues.

04

System covers €22B in acute specialist care and €5B in mental health care

THE MODEL

A two-channel care model

Separating acute & complex care from elective care — so scarce workforce and infrastructure are deployed where they create the most capacity.

University Medical Centre

Acute & complex care

High acuity

Emergency

Specialist referral

Elective care

Planned

High volume

Day-case

Advising the leaders who shape healthcare for all.