On November 17,2023, from 10:00 AM to 11:00 AM, Peking University Institute for Global Health and Development successfully hosted the seventh session of the Fall 2023 Reading Club. The keynote speaker for this event was post doc fellow Nan Xiao from Peking University Institute for Global Health and Development.

The article presented in this event is  Do financial incentives trump clinical guidance? Hip replacement in England and Scotland . England introduced a case payment mechanism from 2003/4, while Scotland continued to pay through global budgets. The authors investigated the impact this change had on activity for Hip Replacement. They examine the financial reimbursement attached to uncemented Hip Replacement in England, which has been more generous than for its cemented counterpart, although clinical guidance from the National Institute for Clinical Excellence recommends the later. In Scotland this financial differential does not exist. They use a difference-in-difference estimator, using Scotland as control, to test whether the change in reimbursement across the two countries had an influence on treatment. Their results indicate that financial incentives are directly linked to the faster uptake of the more expensive, uncemented Hip Replacement in England, which ran against the clinical guidance

Source：Papanicolas, I., & McGuire, A. (2015). Do financial incentives trump clinical guidance? Hip replacement in England and Scotland. Journal of health economics, 44, 25-36.

（By Nan Xiao）