Diagnosis-related group (DRG)

Diagnosis-related groups (DRGs) are a system used in healthcare to classify patients based on their diagnoses and the treatments they receive. Each DRG is assigned a specific payment rate, which determines how much hospitals are reimbursed for treating patients with similar conditions. This system aims to standardize hospital payments, promote efficiency, and improve care management. By grouping patients with similar health issues, DRGs help healthcare providers anticipate costs and allocate resources effectively, ensuring that hospitals can deliver quality care while managing their budgets.