Does a prospective payment system like the DRG induce a moral hazard behavior?

Abstract: This bachelor essay examines whether a prospective payment system such as the Diagnose Related Group (DRG) reimbursement system create moral hazard behavior like supplier induced demand in the Swedish healthcare market using data from 2012. Supply induced demand in the Swedish healthcare sector is suggested by some descriptive evidence, but is not supported by a controlled regression analysis of an almost universal sample of healthcare consumption in Swedish hospitals.