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What is Diagnosis Related Groups (DRGs)

Encyclopedia of Healthcare Information Systems
A system that classifies hospital cases into one of approximately 500–600 groups, which relate types of patients treated, to the hospital resources they consumed. It was first developed by Robert Barclay Fetter and John Devereaux Thompson at Yale University, in the slate 1970s. The DRGs are assigned by a “grouper” program based on ICD diagnoses, procedures, age, sex, and the presence of complications or comorbidities.
Published in Chapter:
Optimization of Medical Supervision, Management, and Reimbursement of Contemporary Home Care
B. Spyropoulos (Technological Education Institute of Athens, Greece), M. Botsivaly (Technological Education Institute of Athens, Greece), A. Tzavaras (Technological Education Institute of Athens, Greece), and K. Koutsourakis (Technological Education Institute of Athens, Greece)
Copyright: © 2008 |Pages: 9
DOI: 10.4018/978-1-59904-889-5.ch128
Abstract
Adapting medical and managerial decision-making (Spyropoulos, 2006a) in the modern home care environment is a cardinal prerequisite, in order to ensure, first, an economically sustainable development of the aging population healthcare (Scarcelli, 2001); second, the rehabilitation services required for impaired persons; and finally, the psychosomatic support necessary in the developed countries, during the next decades. Thus, a strategic question emerges that is how home care will be medically supervised and financially reimbursed. The present study attempts to describe the present situation and the contemporary technological trends in home care; more specific, it is focused on a system developed by our team that intends first, to enable the optimal documentation of the provided home care, and second, to facilitate the acquisition of all relevant financial data, leading to a fair remuneration of the services offered.
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DRGs and the Professional Independence of Physicians
A hospital financing tool first developed in the US at Yale University starting in the late 1960s and first implemented in 1983 for the US Medicare system. DRGs relate the case mix of hospitals to their costs.
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