What are DRGs? Medicare Severity Diagnosis Related Groups,
or MS-DRGs, are payment groups
designed for Medicare beneficiaries.
Patients who have similar clinical characteristics
and similar treatment costs are assigned to an MS-DRG.
The MS-DRG will be linked to a fixed payment amount
based off the average treatment cost
of patients in the group.
Hospitals provide this information on their bills,
and Medicare uses the information to decide
how much the hospital should be paid.