diagnostic-related groups

Diagnostic-Related Groups (DRGs) are a system used by hospitals and insurance companies to classify hospital stays for billing purposes. They group patients with similar medical conditions and treatment needs into categories, each with a set payment amount. This encourages hospitals to provide efficient care, as they receive a fixed fee regardless of actual costs. DRGs help streamline billing, control healthcare costs, and monitor quality, ensuring that payment is fair and consistent across different cases with comparable clinical complexity.