DIAGNOSIS-RELATED GROUP ANALYSIS AND STRATEGIC HEALTHCARE BUDGETING

Abstract

The term Diagnosis-Related Group DRG) refers to a classification system used to assess hospital services with the aim of streamling health care costs and improving performance. The DRG system focuses on the utilization of resources, and is not concerned with the specific type of care provided to the patient. This system highlights any diseconomies and eventual critical aspects of the hospital system. This article examines the variables used to correctly evaluate hospital performance based on the DRG system. These include: Average length of Stay, Average Daily Patients Load, Comparative Performance Index and Case Mix Index.