1
00:00:06,840 --> 00:00:12,929
What are DRGs? Medicare Severity
Diagnosis Related Groups,

2
00:00:12,930 --> 00:00:16,078
or MS-DRGs, are payment groups

3
00:00:16,079 --> 00:00:19,349
designed for Medicare beneficiaries.

4
00:00:19,350 --> 00:00:22,289
Patients who have similar
clinical characteristics

5
00:00:22,290 --> 00:00:27,119
and similar treatment costs
are assigned to an MS-DRG.

6
00:00:27,120 --> 00:00:30,719
The MS-DRG will be linked
to a fixed payment amount

7
00:00:30,720 --> 00:00:33,209
based off the average treatment cost

8
00:00:33,210 --> 00:00:35,219
of patients in the group.

9
00:00:35,220 --> 00:00:38,639
Hospitals provide this information
on their bills,

10
00:00:38,640 --> 00:00:41,369
and Medicare uses the information
to decide

11
00:00:41,370 --> 00:00:45,280
how much the hospital should be paid.