0:00:06.840,0:00:09.520
What are DRGs?

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Medicare Severity[br]Diagnosis Related Groups,

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or MS-DRGs, are payment groups

0:00:16.079,0:00:19.349
designed for Medicare beneficiaries.

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Patients who have similar[br]clinical characteristics

0:00:22.290,0:00:27.119
and similar treatment costs[br]are assigned to an MS-DRG.

0:00:27.120,0:00:30.719
The MS-DRG will be linked[br]to a fixed payment amount

0:00:30.720,0:00:33.209
based off the average treatment cost

0:00:33.210,0:00:35.219
of patients in the group.

0:00:35.220,0:00:38.639
Hospitals provide this information[br]on their bills,

0:00:38.640,0:00:41.369
and Medicare uses the information[br]to decide

0:00:41.370,0:00:45.280
how much the hospital should be paid.