Why the UK Government Modify Payment by Results by Introducing Patient-Level Data Costing Systems - Dissertation Example

The paper “Why the UK Government Modify Payment by Results by Introducing Patient-Level Data Costing Systems” is a valuable example of a finance & accounting dissertation. In 2002, a new method of payment system called “Payment by Results” was introduced and it became a very popular method of funding hospital activities. Payment by Results is the method of paying the providers for the health services that they have delivered, based on the health interventions they have undertaken.

Under the PbR system, the commissioner will pay the national tariff for the treatment of each patient by the service provider. However, due to the increasing need of identifying cost related to the individual service line and individual patient, the PbR system was found to have certain drawbacks Due to all these reasons, NHS organizations have started to implement the new system of costing known as Patient Level Information and Costing System (PLICS). This system not only helps the healthcare organizations to identify individual patient-level costs, but also it helps in realizing the income related to the treatment of every patient and service line.

The main purpose of this dissertation is to analyze the major problems of the PbR system that resulted in the implementation of PLICS in NHS organizations.A series of interviews were conducted with several medical and finance personnel of some selected NHS Trusts and UK Foundations Trusts. The interview was focused on the current implementation and benefits of PLICS in those multi-specialty and cancer specialist hospitals. In addition, a questionnaire survey was also conducted with several healthcare organizations in the UK to identify the trend of PLICS implementation and key benefits of PLICS.

The findings from interviews and surveys revealed that PLICS is currently used as a costing tool in almost all NHS organizations. The identification of the cost of the individual patient using the PLICS data is the main benefit of this new tool. Moreover, the PLICS is used to identify the cost of treatment among other organizations, which can lead the NHS organizations to create a benchmark. PICS data is also used to engage clinicians in creating a more cost-efficient and high-quality healthcare system.