Diagnosis-Related Group payment system

The Diagnosis-Related Group (DRG) payment system is a method used by hospitals and insurance programs to determine how much to pay for a patient's care. Patients are grouped based on their diagnosed condition, the treatments they need, and other clinical factors. Each group has a fixed payment amount, which encourages hospitals to be efficient while providing necessary care. Essentially, instead of billing for every service, hospitals receive a set fee for each patient's hospital stay within the group, promoting cost management without sacrificing quality.