Use factor analysis to identify difficulties in implementing a case payment reimbursement system in Taiwan

Herng Ching Lin, Roger L. Amidon

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


Background. Taiwan's National Health Insurance Program (NHIP) began on March 1, 1995. The major purpose of National Health Insurance is to remove financial barriers to care and enhance accessibility to comprehensive health care for all citizens in Taiwan. However, due to the rapid rise in medical expenses and unanticipated accumulation of overdue premiums, the program went into debt in 1999. In response to this financial crisis, the Bureau of National Health Insurance proposed to change hospital financing from a cost-based to a case-based reimbursement system. The major purpose of this study is to identify the difficulties in implementing a case payment reimbursement system in Taiwan. Methods. This study was conducted in four stages: structured interviewing, questionnaire development and testing, surveying, and data analysis. In this study, the sampling surgeons were selected based on availability from 7 teaching hospitals and 10 regional hospitals. Results. The results of factor analysis indicated that a five-factor structure has emerged in the use of the newly developed survey administered to 372 surgeons in Taiwan. These five factors accounted for approximately 97% of the overall variance. The alpha coefficient for this 22-item scale was 0.914. The researchers concluded that these five factors are considered evidence of adequate internal consistency for use in measuring difficulty in the implementation of case payment. Conclusions. These five factors were named as follows: perceived barriers to compliance, perceived barriers to quality assurance, perceived financial pressure, perceived threats to physicians' autonomy, and inadequate allowance for patient severity. Policy recommendations including annual revision of coding system, physician education, and hospital specialization were also made to address the perceived difficulties identified in this study.

Original languageEnglish
Pages (from-to)629-640
Number of pages12
JournalChinese Medical Journal (Taipei)
Issue number11
Publication statusPublished - 2001
Externally publishedYes


  • Case payment system
  • Factor analysis
  • Taiwan's National Health Insurance

ASJC Scopus subject areas

  • General Medicine


Dive into the research topics of 'Use factor analysis to identify difficulties in implementing a case payment reimbursement system in Taiwan'. Together they form a unique fingerprint.

Cite this