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Terms of Reference The National Health Insurance program in Taiwan has launched since March, 1995, which compulsory system covers all the population in Taiwan, and provides full covering all medically necessary service. Whether it is a kind of welfare policy or a social insurance? What is its benefit or any burden to people seeking medical treatment, drug subsidy or reducing expenditure on extending-life care such as medical treatment for hemodialysis, respiratory care ward, chronic mental patients, and etc. The progress over the past two decades of health insurance system in Taiwan turned out some problems like dramatic change in medical interrelationship and medical policy. With increasing financial deficit, Health Insurance Administration brought out a counter proposal in July, 2002, says fixed budget control program, it refers to a fixed amount approved to medical institutions based on quarterly sales amount in past one year. Furthermore, the 2nd-generation Health Insurance program took into effect in 2013. Subject The hospitals number in Taiwan has been decreased from 594 in 2003 down to 495 in 2013, 16.7% lower over a decade. The main reason caused that is the medical resources have been overused by people rely heavily on big-group hospitals by loose regulation on medical institution classification and consequently small-to-middle hospitals to be merged. How above impacts on medical institution for short-to-middle run, and how it impacts on medical resources distribution to the population, how small-to-middle hospitals to improve quality and to increase profitability under severe competition with big-group hospitals. As if by mergence, or introducing systems and resources of big academic medical centers, could it be a good help for rapid upgrade? This is the primary subject of this case study on. Study Method This is to make a full analysis and case study by taking a public local community teaching hospital as an example, who has responsibilities of public service but without sufficient resources. The tough difficulties are not only coming from decreasing government support but also increasing aging and disadvantaged of local people. How to make a change to survive, even under a limited tenure of hospital president, and set up a business model of making dream comes truth.
Keywords: The National Health Insurance program,total medical expenditure budget (global budget payment system),small-and-medium hospital,health check
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