Daman introduces new billing system

DRG, which is based on a simply concept of averages, aims to increase efficiency and control the quality of medical services by classifying hospitals’ claims for inpatient services. The system identifies patients with similar clinical profiles and costs of treatment and pay the hospital the average amount, regardless of what it costs to treat an individual patient.

The authorities expect the system to limit healthcare providers from adding unnecessary services in attempts to boost their revenues. The authorities also hope that Simplified billing would also help prevent fraud, transparency in cost negotiation and eventually protect members from unnecessary rise of premium.

The move came following the Health Authority - Abu Dhabi’s (HAAD) circular mandating the payment of the Basic Abu Dhabi claims starting from August 1 based on DRGs. Before the end of 2011, all inpatient claims for Daman’s Enhanced plans will also follow the new DRG system.

“At Daman we strive to position ourselves as a pioneer in the UAE’s health insurance industry. We have implemented the DRG system as a sign of commitment to HAAD’s vision, one that guarantees more transparency in the health insurance process and enhances the way medical care is delivered to all inpatients at Abu Dhabi’s hospitals,” said Dr Jad Aoun, Chief Medical Officer of Daman.

The DRG system has been adopted in several countries around the world including the US, Germany, Australia and Singapore.

olivia@khaleejtimes.com