IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v21y1991i1p6-26.html
   My bibliography  Save this article

Diagnosis Related Groups: Understanding Hospital Performance

Author

Listed:
  • Robert B. Fetter

    (Department of Operations Research, Yale University, New Haven, Connecticut 06520)

Abstract

Diagnosis related groups (DRGs) were originally developed to provide product definitions for the output of hospitals. They can serve as a basis for budgeting, cost control, and quality control in hospitals. They were adopted by Medicare in 1983 to serve as a basis for a prospective payment system (PPS) for US hospitals. This system has resulted in savings of more than $50 billion in Medicare hospital payments through 1990 and extended the solvency of the Medicare Hospital Trust Fund well into the next century. Many other payers for hospital care have adopted DRG systems, including state Medicaid programs and private insurers, such as Blue Cross. More than 20 countries are currently developing or have adopted DRG-based systems for managing and financing hospital care.

Suggested Citation

  • Robert B. Fetter, 1991. "Diagnosis Related Groups: Understanding Hospital Performance," Interfaces, INFORMS, vol. 21(1), pages 6-26, February.
    • Handle: RePEc:inm:orinte:v:21:y:1991:i:1:p:6-26
    DOI: 10.1287/inte.21.1.6
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.21.1.6
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.21.1.6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:21:y:1991:i:1:p:6-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.