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Health systems in transition

Portugal

73

the process of adjusting prospective budgets for case-mix and other hospital

specificities, enabling a more equitable allocation of resources than would

otherwise be possible if only patient volume or information on the length of

stay were available.

Since 2003, DRGs have been used to set the totality of NHS hospitals and

inpatient funding; however, between 1997 and 2002 they have been introduced

smoothly. NHS inpatient care funding through DRGs represents around 75–85%

of NHS hospitals’ inpatient budget; the remaining percentage corresponds to

billing to third-party payers (Mateus, 2011). The DRGs are used to set the

budget given to the hospital, not to define a payment episode by episode. Some

other refinements of the budget computation have been implemented between

1997 and 2002, such as case-mix adjustment for ambulatory surgery and the

set-up of hospital peer grouping using a “grade of membership” model for

price setting (for further details, see Vertrees & Manton, 1986). In spite of

the formal sophistication of the payment model, the initial budget allocation

was more indicative than normative. Because budget overruns are covered by

supplementary allocations, the activity-based system had limited incentives to

encourage cost-containment or efficient practices. This system was abandoned

in 2001 in favour of a group classification derived from clusters based on

principal components analysis.

Health subsystems and private insurance schemes reimburse NHS hospitals

retrospectively on a case-by-case basis for inpatient care and ambulatory surgery

(according to a DRG price list), and on a fee-for-service basis for ambulatory

services provided to their beneficiaries. Private insurers may use different

modes of reimbursement. In some cases, patients are expected to pay and then

be reimbursed retroactively for the cost of services. The insurance companies

also define networks of preferred providers, at which the patient only pays the

co-payment (the remaining being settled directly between the provider and the

insurance company). This method acts as an incentive for such patients to seek

treatment from contracted providers.

Payment of primary care centres

Primary care centres are responsible for delivering primary care. They do not

yet have financial or administrative autonomy. The Ministry of Health allocates

funds to the RHAs, which in turn fund the global activity of each health centre

through the recently created groups of primary care centres (

Agrupamentos de

Centros de Saúde

, ACES). The contract (

contrato-programa

) of each ACES,

which is responsible for primary care delivery in a given geographical area, is

negotiated between the ACES and the RHA.