| Type of Cost Containment Method | Examples |
|---|---|
| Short Term Direct Control | Staff numbers – e.g. controlling the numbers of healthcare professionals Levels of remuneration Price controls – e.g. fee schedules negotiated between provider associations and third party payers |
| Short Term Indirect Control | Positive lists or negative lists (medical products) – to encourage more cost-effective use of pharmaceuticals, diagnostic tests, medical procedures Restrictions on sales promotion/advertising – to avoid increasing demand for services that are not medically necessary |
| Medium Term Direct Control | Construction and extension of facilities – e.g. limiting the number of hospitals and hospital beds Installation/purchase of expensive equipment – e.g. through Certificate of Need legislation |
| Medium Term Indirect Control | Prospective payment – e.g. Diagnostic-Related Groups (DRGs) to discourage unnecessary hospitalization or unnecessarily prolonged hospital stays Prepaid capitation – to avoid perverse incentives to maximize revenue through providing more services than medically necessary |
| Long Term Direct Control | Human resources planning – making entry into health professions more difficult to control overall numbers Specialist training – restricting the number of specialists |
| Long Term Indirect Control | Disease prevention and health promotion– keeping the focus on prevention Public education – educating the public to practice healthy lifestyles, and to seek care from GPs first |
| Cost-sharing by Patient | Co-insurance, deductibles, etc. – to increase cost-sharing by patients to discourage care-seeking that is not medically necessary, and to seek cheaper alternatives |