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What are DRGs?

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Medicare Severity
Diagnosis Related Groups,

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or MS-DRGs, are payment groups

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designed for Medicare beneficiaries.

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Patients who have similar
clinical characteristics

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and similar treatment costs
are assigned to an MS-DRG.

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The MS-DRG will be linked
to a fixed payment amount

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based off the average treatment cost

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of patients in the group.

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Hospitals provide this information
on their bills,

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and Medicare uses the information
to decide

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how much the hospital should be paid.