Hospital Global Budgeting

This is a summary of Chapter 3: Hospital Global Budgeting in the book - Designing and Implementing Health Care Provider Payment Systems: How-To Manuals

Hospital funding mechanisms are a key part of the process of reform in many health care systems. Many countries with publicly funded systems have introduced, or modified, systems of global budgets. Global budgets can be used to deliver changes to service delivery patterns. They can be refined and strengthened by the inclusion of incentives (and in the event of nonperformance, penalties). They can also be developed to reward quality, appropriate clinical practice, and efficiency. One of the major attractions is that this is possible in an administratively simple manner and with relatively unsophisticated data.