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Employee Benefits > Diagnosis Related Group (DRG)

The following information is about Diagnosis Related Group (DRG).

Diagnosis Related Group (DRG) Defined

This is a prospective payment system used by Medicare to reimburse acute care hospitals. Under this system, a standard flat rate per hospital admission is prospectively established by and paid for by Medicare regardless of the hospital's cost of providing that care. Patients' illnesses or injuries are classified according to a list of 490 DRGs. Each DRG is assigned a numerical value, such as a stated dollar amount for a stroke.

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