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Definition

MS-DRG

Medicare Severity Diagnosis Related Groups: codes that group inpatient hospital stays for a single, bundled payment.

Hospitals are often paid one bundled amount for an inpatient admission based on its MS-DRG, which reflects the diagnosis, procedures and severity. A joint replacement and a heart-failure admission each have their own DRG.

In MRFs, DRG rates let you compare the bundled price of an entire hospital stay across hospitals.

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