Compare And Contrast Ms-Drg Vs Drg System

The MS-DRG System Verses the DRG System.

Each year more and more people enroll and remain on Medicare. Since technology as well as cures and therapies for diseases have advanced in the last decade the number of people on Medicare increases each year as people are living longer today than a few years ago. That being said today I would like to talk about DRGs and MS-DRGs then compare the two.

Diagnosis-Related Groups

Diagnosis-Related Groups or DRGs were first developed at Yale University in 1975 for the purpose of grouping together patients with related treatments and conditions for comparative studies . On October 1, 1983, DRGs were adopted by Medicare as a basis of payment for inpatient hospital services in order to attempt to control hospital costs (Cacace M., & Schmid, A). How DRGS work is they delegate a numeric significance to an acute care inpatient hospital episode of care, which assists as a comparative weighting factor anticipated to represent the resource amount of hospital care of the specific medical

A Medicare Severity-Diagnosis Related Group (MS-DRG) is a system of sorting a Medicare patient’s hospital stay into many groups in order to expedite payment of services for Medicare patients (CMS, "Acute Inpatient PPS") . The MS-DRG is the most-widely used system today as a result of the rising number of Medicare patients. Payments are calculated using wage variants, geographic locations, and the percentage of Medicare patients that a hospital treats (CMS, "Acute Inpatient PPS"). In short, the Medicare Severity-Diagnosis Related Group (MS-DRG) system enables the Centers for Medicare and Medicaid Services (CMS) to provide improved reimbursements to hospitals serving more severely ill patients. Hospitals treating less severely ill patients will receive less reimbursement. (CMS, "Acute Inpatient