Diagnostic-Related Groups

From the Paper:

"DRG SYSTEM AND LENGTH-OF-STAY: AN ECONOMIC ANALYSIS

Abstract
This examination investigated the following research question: What effects have DRG pricing had on hospital length-of-stay for Medicare patients and for commercial health insurance patients? The examination found that hospital length-of-stay decreased for both patient groups subsequent to the implementation of the DRG system.
The findings were consistent with the economic incentives created for hospitals by the DRG system; however, hospital length-of-stay for both patient groups also declined from 1978 through 1982 prior to the implementation of the DRG system. Thus, it should not be concluded that all of the reductions in hospital length-of-stay were attributable to the implementation of ..."

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