Dubai: The Dubai Health Authority (DHA) said on Tuesday it would adopt a new health insurance payment system across the emirate.

Under the new system, payments to hospitals will be based on the level of care required and hospital resources, rather than the patient’s length of stay.

The new system uses statistics for classifying inpatient stays into groups for payment purposes.

It also has a medical inflation indicator that caters to increases in cost for the medical sector, which can produce indicators of inflation particular to health care.

Humaid Al Qatami, DHA chairman and director-general, said the system would help Dubai’s health providers adopt a clear pricing method, allowing hospitals and clinics to provide fair prices.

The system — which was planned after holding a series of meetings with insurance providers — also allows for investment opportunities based on set standards, Al Qatami added.

The health body’s executive council approved the implementation of the system, called the International Refined Diagnosis-Related Group (IR DRG).

It will be implemented within three years starting 2017 and ending in 2019, in order for hospitals and clinics to adapt.

The pilot phase with shadow billing will begin in 2017 for hospital accommodation only, and will last till the end of 2017.

By the start of 2018, all services will be included and the pilot phase for outpatient clinics will begin. In 2019, the system will be implemented in full.