How does DRG reform affect length of stay and hospitalization costs in traditional Chinese medicine hospitals?—an empirical analysis using interrupted time-series model from two cities in western China

DRG reform has positively influenced the length of stay and hospitalization costs in TCM hospitals, with tertiary facilities showing better outcomes than secondary ones. To improve the effectiveness of DRG health insurance payment reforms in China, it is essential to enhance the qualifications of medical personnel and advance information technology infrastructure in TCM hospitals. Furthermore, implementing differentiated reforms across TCM hospitals and strengthening the systematic development of health insurance payment structures are critical.