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The effect of payment method and multimorbidity on health and healthcare utilisation

Helen Hayes (Health Organisation, Policy and Economics, School of Health Sciences, The University of Manchester, Manchester, UK)
Jonathan Stokes (Health Organisation, Policy and Economics, School of Health Sciences, The University of Manchester, Manchester, UK)
Søren Rud Kristensen (Centre for Health Policy, Institute of Global Health Innovation, Imperial College London, London, UK)
Matt Sutton (Health Organisation, Policy and Economics, School of Health Sciences, The University of Manchester, Manchester, UK) (The University of Melbourne Institute of Applied Economic and Social Research, Melbourne, Australia)

Journal of Health Organization and Management

ISSN: 1477-7266

Article publication date: 7 January 2021

Issue publication date: 5 May 2021

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Abstract

Purpose

Three types of payment methods have been introduced across European countries in attempts to encourage better, more integrated care of persons with multimorbidity: pay-for-performance; pay-for-coordination; and an all-inclusive payment method. We examine whether there are differences in the way these payment methods affect health and healthcare use in persons with multimorbidity.

Design/methodology/approach

Using individual-level survey data from twenty European countries, we examine unadjusted differences in average outcomes for the years 2011–2015 by whether countries adopted new payment methods for integrated care. We then test for a differential effect for multimorbid persons using linear, individual random effects regressions, including country and time fixed effects and clustering standard errors at the country level.

Findings

We find little effect of varying payment methods on key outcomes for multimorbid individuals despite the theoretical predictions and the rhetoric in many policy documents.

Research limitations/implications

Policymakers should bear in mind that the success of the payment method relies on the specific design of the incentives and their implementation. New effective models of care and how to incentivise these for multimorbid patients is an ongoing research priority.

Originality/value

This paper is the first to study the effects of payments for integration on the dimensions and populations these schemes intend to affect; health and healthcare use at the individual level for multimorbid individuals.

Keywords

Acknowledgements

This project (SELFIE) has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 634288. The content of this presentation reflects only the SELFIE groups’ views, and the European Commission is not liable for any use that may be made of the information contained herein.

Jonathan Stokes was additionally supported by an MRC Fellowship.

The SHARE data collection has been funded by the European Commission through FP5 (QLK6-CT-2001-00360), FP6 (SHARE-I3: RII-CT-2006-062193, COMPARE: CIT5-CT-2005-028857, SHARELIFE: CIT4-CT-2006-028812), FP7 (SHARE-PREP: GA N°211909, SHARE-LEAP: GA N°227822, SHARE M4: GA N°261982) and Horizon 2020 (SHARE-DEV3: GA N°676536, SERISS: GA N°654221) and by DG Employment, Social Affairs and Inclusion. Additional funding from the German Ministry of Education and Research, the Max Planck Society for the Advancement of Science, the US National Institute on Aging (U01_AG09740-13S2, P01_AG005842, P01_AG08291, P30_AG12815, R21_AG025169, Y1-AG-4553-01, IAG_BSR06-11, OGHA_04–064, HHSN271201300071C) and from various national funding sources is gratefully acknowledged (see www.share-project.org). ELSA was developed by a team of researchers based at the University College London, NatCen Social Research, and the Institute for Fiscal Studies. The data were collected by NatCen Social Research. The funding is currently provided by the National Institute of Aging (R01AG017644) and a consortium of UK government departments coordinated by the National Institute for Health Research.

Citation

Hayes, H., Stokes, J., Kristensen, S.R. and Sutton, M. (2021), "The effect of payment method and multimorbidity on health and healthcare utilisation", Journal of Health Organization and Management, Vol. 35 No. 3, pp. 382-405. https://doi.org/10.1108/JHOM-05-2020-0208

Publisher

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Emerald Publishing Limited

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