ABSTRACT
DID is based on the assumption that, without the intervention, the trends of outcome variables from treatment group and control group should be similar. In this study, that assumption is satisfied. For the outcome variables, including outpatient service provision, inpatient service provision, health care revenue, and the proportion of drug revenue in total health care revenue from 2007 to 2010, data were collected to reveal the trends of these variables between treatment hospital and control hospital. It is demonstrated that the trends between two hospitals are similar to each other for all outcome variables in the time period prior to policy implementation.
