Question

What advantages and disadvantages of DRG? (Diagnosis Related Groups)

Answer 1

Diagnosis related group is a patient classification system that categorizes patients according to diagnosis,type of treatment,age,presence of compilcations,comorbidities etc  to standardise payment to the hospitals. A DRG payment covers all charges associated with an inpatient stay from the time of admission to discharge.It is based on the care given to and resources used by a typical patient group.The potential advantges of DRGs are cost containment, cost-effective treatment, reduction in unnecessary care.The possible disadvatages of DRGs are selection of patients, increase in admission, premature discharge, monitoring cost, under-treatment.DRG payment is regarded as effective but could result in quicker and sicker discharges.