Length of hospital stays and financial incentives: evidence from Dutch rehabilitation centers

Abstract Non-linear reimbursement contracts in healthcare have been increasingly used to quantify providers’ responses to financial incentives. In the present research, we utilize a large one-off increase in the reimbursement of rehabilitation care to assess to what extent providers are willing to modify their treating behavior to maximize profits. In order to disincentivize the use of short inpatient stays for rehabilitation care, Dutch policy-makers have instated a two-part stepwise tariff-schedule. A lower tariff-schedule is applied for short hospital stays (≤ 14 days), while a higher tarif... Mehr ...