Early in the program, the payment system was predominantly fee-for-service. Most health providers operate in the private sector and form a competitive market on the health delivery side. However, many healthcare providers took advantage of the system by offering unnecessary services. In the face of increasing loss and the need for cost containment, NHI changed the payment system from fee-for-service to a global budget, a kind of prospective payment system, in 2002.
Early in the program, the payment system was predominantly fee-for-service. Most health providers operate in the private sector and form a competitive market on the health deli.very side However, many healthcare providers took advantage of the system by offering unnecessary services. In the face of increasing loss and the need for cost containment, NHI changed the payment system from fee-for-service to a global budget, a kind of prospective payment system, in 2002.