Skip to main content

Lund University Publications

LUND UNIVERSITY LIBRARIES

Limited Consequences of a Transition From Activity-Based Financing to Budgeting : Four Reasons Why According to Swedish Hospital Managers

Ellegård, Lina Maria LU and Glenngård, Anna Häger LU (2019) In Inquiry: The Journal of Health Care Organization, Provision and Financing 56.
Abstract

Activity-based financing (ABF) and global budgeting are two common reimbursement models in hospital care that embody different incentives for cost containment and quality. The purpose of this study was to explore and describe perceptions from the provider perspective about how and why replacing variable ABF by global budgets affects daily operations and provided services. The study setting is a large Swedish county council that went from traditional budgeting to an ABF system and then back again in the period 2005-2012. Based on semistructured interviews with midlevel managers and analysis of administrative data, we conclude that the transition back from ABF to budgeting has had limited consequences and suggest 4 reasons why: (1)... (More)

Activity-based financing (ABF) and global budgeting are two common reimbursement models in hospital care that embody different incentives for cost containment and quality. The purpose of this study was to explore and describe perceptions from the provider perspective about how and why replacing variable ABF by global budgets affects daily operations and provided services. The study setting is a large Swedish county council that went from traditional budgeting to an ABF system and then back again in the period 2005-2012. Based on semistructured interviews with midlevel managers and analysis of administrative data, we conclude that the transition back from ABF to budgeting has had limited consequences and suggest 4 reasons why: (1) Midlevel managers dampen effects of changes in the external control; (2) the actual design of the different reimbursement models differed from the textbook design; (3) the purchasing body's use of other management controls did not change; (4) incentives bypassing the purchasing body's controls dampened the consequences. The study highlights the challenges associated with improvement strategies that rely exclusively on budget system changes within traditional tax-funded and politically managed health care systems.

(Less)
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
activity-based financing, budgets, health care managers, health care delivery, qualitative research, Sweden
in
Inquiry: The Journal of Health Care Organization, Provision and Financing
volume
56
publisher
SAGE Publications
external identifiers
  • pmid:30983464
  • scopus:85064853546
ISSN
0046-9580
DOI
10.1177/0046958019838367
project
Public Management Research
language
English
LU publication?
yes
id
182803e0-3e2d-4b49-97dc-18e936f87f19
date added to LUP
2019-04-29 08:40:36
date last changed
2024-04-18 11:25:15
@article{182803e0-3e2d-4b49-97dc-18e936f87f19,
  abstract     = {{<p>Activity-based financing (ABF) and global budgeting are two common reimbursement models in hospital care that embody different incentives for cost containment and quality. The purpose of this study was to explore and describe perceptions from the provider perspective about how and why replacing variable ABF by global budgets affects daily operations and provided services. The study setting is a large Swedish county council that went from traditional budgeting to an ABF system and then back again in the period 2005-2012. Based on semistructured interviews with midlevel managers and analysis of administrative data, we conclude that the transition back from ABF to budgeting has had limited consequences and suggest 4 reasons why: (1) Midlevel managers dampen effects of changes in the external control; (2) the actual design of the different reimbursement models differed from the textbook design; (3) the purchasing body's use of other management controls did not change; (4) incentives bypassing the purchasing body's controls dampened the consequences. The study highlights the challenges associated with improvement strategies that rely exclusively on budget system changes within traditional tax-funded and politically managed health care systems.</p>}},
  author       = {{Ellegård, Lina Maria and Glenngård, Anna Häger}},
  issn         = {{0046-9580}},
  keywords     = {{activity-based financing; budgets; health care managers; health care delivery; qualitative research; Sweden}},
  language     = {{eng}},
  month        = {{04}},
  publisher    = {{SAGE Publications}},
  series       = {{Inquiry: The Journal of Health Care Organization, Provision and Financing}},
  title        = {{Limited Consequences of a Transition From Activity-Based Financing to Budgeting : Four Reasons Why According to Swedish Hospital Managers}},
  url          = {{http://dx.doi.org/10.1177/0046958019838367}},
  doi          = {{10.1177/0046958019838367}},
  volume       = {{56}},
  year         = {{2019}},
}