The global budget payment system (gbps), introduced recently, has also had tremendous impact on providers' behavior. the objectives of the gbps are to control costs, to improve the efficiency and quality of health care, and to enhance professional autonomy. the gbps was first applied to dental care in 1998, to traditional medicine in 2000, to western clinics (general practitioners) in 2001, and finally to hospitals in 2002. this reform set a cap for total health care expenditures and for appropriate distribution among the participating groups. providers of different sectors were invited by the bnhi to work together under a so-called comanagement model to control cost and to improve the quality, efficiency, and effectiveness of health care. to achieve the goal, conversion factors of the fee schedules were floating and were computed retrospectively at the end of each quarter (conversion factori = budget for quarter i/total points claimed by all providers at each sector at quarter i). in addition, providers led by physician associations (eg, the medical association of the republic of china) or the hospital association will collectively develop strategies to improve the quality and efficiency of health care and to prevent fraud and abuse.13 The budget allocation (to different sectors), it is hoped, will help the government develop improved policies and better use of health care resources. for example, before the gbps was introduced, numerous regulations had prevented clinics from providing many ancillary services and procedures and even necessary care to patients. therefore, most physicians, including surgeons, practicing at clinics would act like general practitioners and treat only minor diseases. to prevent clinics from shrinking and to enhance the accessibility of the insured, the caps for all the clinics for the first 1½ years was near 5% growth, compared with a 5% reduction during the previous period, and it actually created great incentive for general practitioners to provide more preventive and necessary care and to improve the quality of and access to care. clinics were allowed to provide 82 additional procedures and have incentives for joint disease management programs, such as for diabetic patients, to improve quality of care. preliminary results showed that, as expected, clinics provided 16% more preventive care, 5% more surgical procedures, and 14% more visits for chronic patients during the first 2 quarters after institution of the gbps. consultation fees increased, whereas costs of drugs decreased during the same time. more patients rated overall quality of care in the clinics as acceptable after the gbps vs before (96.6% vs 94.6%).14