From 2003, each inpatient's stay at a German hospital will be reimbursed according to diagnosis related groups. The former German hospital financing system, which consisted partly of per diem rates and partly of per‐case rates, was abolished in an attempt to increase efficiency in hospitals....

Purpose – The purpose of this paper is to investigate the impact of accounting on clinical practices. Design/methodology/approach – This paper reviews existing studies of clinical budgeting; analyses publicly available data on cost‐effectiveness recommendations for the NHS; analyses...