Why and how did Israel adopt activity-based hospital payment? The Procedure-Related Group incremental reform
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Since 2002, Israel has been adopting “Procedure-Related Group” (PRG) as hospital payments.

It also set consistent costing and pricing mechanisms.

One objective was to improve regulators’ capacity to set policy, supervise and control.

Regulators, purchasers and providers were involved in the designing the reform.

PRGs are a simple alternative to DRGs when no sufficient data is available.

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