What are MS-DRGs, or Medicare Severity - Diagnosis Related Groups?

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.