DRG
**DRG**
What is DRG?
DRG stands for Diagnosis Related Group. It is a system used by Medicare and other health insurers to classify hospital cases into one of approximately 500 groups, expecting hospitals to be paid a predetermined sum for each case within that group. DRGs are used for inpatient services and are based on the patient's diagnosis, procedures, age, sex, and the presence of complications or comorbidities. This system encourages hospitals to control costs since they receive a fixed payment regardless of the actual cost of care.
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