What is diagnosis related group?


What is a diagnosis related group?

The financial term of the day is: "diagnosis related groups" or "DRGs."

The human body is a complicated machine, and so many, many things can go wrong and send a person to the hospital. To simplify matters for insurance purposes, diagnosis related groups, or DRGs, lump ailments together into categories. An insurer might reimburse a standard amount for treatment in a category, regardless of the patient's illness.

When you're in the hospital, your precise problem may not be as important to your insurer as your diagnosis related group, or DRG, which classifies your affliction for payment.  

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