1991
DOI: 10.1287/inte.21.1.6
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Diagnosis Related Groups: Understanding Hospital Performance

Abstract: Diagnosis related groups (DRGs) were originally developed to provide product definitions for the output of hospitals. They can serve as a basis for budgeting, cost control, and quality control in hospitals. They were adopted by Medicare in 1983 to serve as a basis for a prospective payment system (PPS) for US hospitals. This system has resulted in savings of more than $50 billion in Medicare hospital payments through 1990 and extended the solvency of the Medicare Hospital Trust Fund well into the next century.… Show more

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Cited by 132 publications
(81 citation statements)
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“…Cases are usually categorized based on clinical data (i.e., diagnoses, procedures), demographic data (i.e., age, gender), and resource consumption data (i.e., costs, length of stay) [2]. Initially developed as an information management tool for clinicians to monitor quality and use of services, patient classification systems now serve as a prospective payment system in many countries [3].…”
Section: Categorization Of Patient Classification Systemsmentioning
confidence: 99%
“…Cases are usually categorized based on clinical data (i.e., diagnoses, procedures), demographic data (i.e., age, gender), and resource consumption data (i.e., costs, length of stay) [2]. Initially developed as an information management tool for clinicians to monitor quality and use of services, patient classification systems now serve as a prospective payment system in many countries [3].…”
Section: Categorization Of Patient Classification Systemsmentioning
confidence: 99%
“…hospital products [1,2]. DRGs are ‘diagnosis-related’ groups of patients that have (a) similar resource consumption patterns and that are (b) clinically meaningful [3]. They are defined by patient classification systems – i.e.…”
Section: Introductionmentioning
confidence: 99%
“…The modal Diagnosis-Related Group (DRG) weight for each procedure is shown in table 1. The resource-intensity weights are used by the Centers for Medicare and Medicaid Services (CMS) to estimate hospital resource use [10]. Coronary artery-bypass graft had the highest DRG-weight (5.65), whereas hysterectomy had the lowest (0.77).…”
Section: Model Of Market Capturementioning
confidence: 99%