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What advantages and disadvantages of DRG? Diagnosis Related Groups (((with the reference)))

What advantages and disadvantages of DRG? Diagnosis Related Groups (((with the reference)))

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Ans) A diagnosis-related group (DRG) is a patient classification system that standardizes prospective payment to hospitals and encourages cost containment initiatives. In general, a DRG payment covers all charges associated with an inpatient stay from the time of admission to discharge.

- The advantages of the DRG payment system are reflected in the increased efficiency and transparency and reduced average length of stay.

- The disadvantage of DRG is creating financial incentives toward earlier hospital discharges. Occasionally, such polices are not in full accordance with the clinical benefit priorities.

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