How Is DRG Determined?

What is DRG validation?

DRG validation involves review of medical record documentation to determine correct coding on a claim submission and in accordance with industry coding standards as outlined by the Official Coding Guidelines, the applicable ICD Coding Manual, UHDDS, and/or Coding Clinics..

What is difference between a DRG and a MS-DRG?

A:Garri L. Garrison: Medicare Severity-Diagnosis Related Groups (MS-DRG) is a severity-based system. … So the patient might have five CCs, but will only be assigned to the DRG based on one CC. In contrast to MS-DRGs, full severity-adjusted systems do not just look at one diagnosis.

Who assigns the DRG for a claim?

Over 14,000 ICD-10-CM diagnosis codes are designed by CMS as CCs and about 3,200 codes are MCCs. Every year, CMS assigns a “relative weight” to every DRG. The relative weight determines the reimbursement associated with that DRG and reflects the patient’s severity of illness and cost of care during hospitalization.

How do DRG codes work?

In general, a DRG payment covers all charges associated with an inpatient stay from the time of admission to discharge. The DRG includes any services performed by an outside provider. Claims for the inpatient stay are submitted and processed for payment only upon discharge.

What is a DRG code?

Diagnosis-related group (DRG) is a system which classifies hospital cases according to certain groups,also referred to as DRGs, which are expected to have similar hospital resource use (cost). They have been used in the United States since 1983.

What is DRG pricing?

The DRG prices represent the relative costliness of inpatient hospital services provided to Medicare beneficiaries. Since the implementation of this prospective payment system (PPS), the DRG prices have been based on both estimated costs and charges.

What is included in a DRG?

DRGs are defined based on the principal diagnosis, secondary diagnoses, surgical procedures, age, sex and discharge status of the patients treated. Through DRGs, hospitals can gain an understanding of the patients being treated, the costs incurred and within reasonable limits, the services expected to be required.

What is the highest number DRG?

Numbering of DRGs includes all numbers from 1 to 998.

How is DRG calculated?

To figure out how much money your hospital got paid for your hospitalization, you must multiply your DRG’s relative weight by your hospital’s base payment rate. Here’s an example with a hospital that has a base payment rate of $6,000 when your DRG’s relative weight is 1.3: $6,000 X 1.3 = $7,800.

What is an example of a DRG?

Examples of findings from this publication include: The top 10 DRGs overall are: normal newborn, vaginal delivery, heart failure, psychoses, cesarean section, neonate with significant problems, angina pectoris, specific cerebrovascular disorders, pneumonia, and hip/knee replacement.

How many DRG codes are there?

740 DRG categoriesThere are over 740 DRG categories defined by the Centers for Medicare and Medicaid Services ( CMS . Each category is designed to be “clinically coherent.” In other words, all patients assigned to a MS-DRG are deemed to have a similar clinical condition.

Why is DRG important?

Diagnosis-related groups (DRGs) are by far the most important cost control and quality improvement tool that governments and private payers have implemented. … Virtually all current tools used to manage health care costs and improve quality do not have these characteristics.