Dubai: New Healthcare billing system will reduce costs and increase quality of care

Dubai Healthcare Billing system

Dubai Health Authority (DHA) has enforced the Diagnosis Related Group (DRG) billing system in all public as well as private hospitals in Dubai. The new billing system will benefit both the patients and the hospitals as well.


Also, DRG is a widely adopted billing system in countries like Canada, Germany, New Zealand, Australia, Singapore, and Hong Kong.


What is DRG?

The DRG is an internationally recognized billing system that uses algorithms to fix base fees for the medical procedures and hence, simplifying the payment protocols and bringing greater transparency and accountability.

DRG also helps health insurance companies to categorize hospitalization costs. Rather than paying a hospital for its every service, a private insurer will pay a predetermined amount based on the patient’s DRG. Also, the Patient’s DRG will be based on various Metrics including patients’ diagnosis, prognosis, and various other factors.

Several years of efforts

Although the move came into implementation this month it has been in the line for more than four years. During these years, many active consultations and stakeholder engagements with the private sector took place.

Humaid Al Qatami, the Director-General of DHA, underlined the benefits of DRG in the health sector in Dubai and said that it would increase efficiency. Further, it will improve the provisions of health care and reduce health care costs.

DRG will benefit the patients most

He said that in addition to controlling the rising costs of health care, eliminating waste, helping resource distribution equally and objectively, deliver cost-effective and high-quality healthcare. DRG would also help in enhancing the transparency and monitor quality across hospitals and the countries.

It will also help in maintaining the high standard of medical practices, clinical pathways, and protocols that will ensure the hospitals and health care providers follow the unified healthcare protocols.

Saleh Al Hashimi, CEO, Dubai Health Insurance Corporation, said that the implementation of DRG will surely help both the patients and health care providers and most importantly it will benefit the patients as it will further increase the effectiveness in the patient’s care. It will help encourage the quality of care and reduction of cost which will help in building a dynamic health sector.


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