The National Health Insurance (NHI) program has implemented in Taiwan since March 1995. The initial balance of revenues and expenditures was stable, but there has been a deficit since 1998. As the deficit problem was mostly caused by the payment system of fee-for-service, the Bureau of NHI (BNHI) implemented global budget (GB) payment system. Under GB, the benefit payments were under control as planned. Since the benefit payments from BNHI are the most part of revenues of hospitals, some hospitals have financial imbalance. This study uses system dynamics to explore the strategies of hospitals facing GB and evaluate its effects on hospitals and patients. This research is still ongoing and will reach two achievements. First, submitting the stock-flow diagrams can provide the managers of hospitals to have a further understanding on their strategies. Second, building the model can simulate and evaluate the effects of multiple strategies on hospitals and patients.
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