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.