Diagnosis Related Group (DRG)
A classification system that bundles inpatient hospital stays into single-payment categories.
Diagnosis Related Groups categorize inpatient hospital stays by diagnosis, procedure, and complications/comorbidities into a single bundled payment. Medicare uses MS-DRGs (Medicare Severity DRGs). The hospital is paid a fixed amount per DRG regardless of length of stay or actual costs. Outliers (very expensive cases) may receive additional payment.
Frequently asked questions
What is diagnosis related group (drg)?
Diagnosis Related Groups categorize inpatient hospital stays by diagnosis, procedure, and complications/comorbidities into a single bundled payment. Medicare uses MS-DRGs (Medicare Severity DRGs). The hospital is paid a fixed amount per DRG regardless of length of stay or actual costs. Outliers (very expensive cases) may receive additional payment.
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