J Korean Acad Nurs. 2009 Aug;39(4):574-583. Korean.
Published online Aug 31, 2009.
Copyright © 2009 Korean Society of Nursing Science
Original Article

Methods and Applications to estimate the Conversion Factor of Resource-based Relative Value Scale for Nurse-Midwife's Delivery Service in the National Health Insurance

Jinhyun Kim,1 and Yoomi Jung2
    • 1Associate Professor, College of Nursing, Seoul National University, Seoul, Korea.
    • 2Doctoral Student, College of Nursing, Seoul National University, Seoul, Korea.
Received March 16, 2009; Accepted July 24, 2009.

Abstract

Purpose

This paper analyzed alternative methods of calculating the conversion factor for nurse-midwife's delivery services in the national health insurance and estimated the optimal reimbursement level for the services.

Methods

A cost accounting model and Sustainable Growth Rate (SGR) model were developed to estimate the conversion factor of Resource-Based Relative Value Scale (RBRVS) for nurse-midwife's services, depending on the scope of revenue considered in financial analysis. The data and sources from the government and the financial statements from nurse-midwife clinics were used in analysis.

Results

The cost accounting model and SGR model showed a 17.6-37.9% increase and 19.0-23.6% increase, respectively, in nurse-midwife fee for delivery services in the national health insurance. The SGR model measured an overall trend of medical expenditures rather than an individual financial status of nurse-midwife clinics, and the cost analysis properly estimated the level of reimbursement for nurse-midwife's services.

Conclusion

Normal vaginal delivery in nurse-midwife clinics is considered cost-effective in terms of insurance financing. Upon a declining share of health expenditures on midwife clinics, designing a reimbursement strategy for midwife's services could be an opportunity as well as a challenge when it comes to efficient resource allocation.

Keywords
Conversion factor; Nurse fee; Nurse-midwife; Reimbursement

Tables

Table 1
Relative Value Scale and Fee Schedule for Nurse-midwife's Delivery Service*

Table 2
Estimates of Optimal Fees for Nurse-midwife's Clinic by SGR model

Table 3
Actual vs Optimal Conversion Factor for Nurse-midwife's Clinic by SGR model

Table 4
Optimal Conversion Factor for Nurse-midwife's Clinic by Cost Analysis

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