1. Use of diagnosis-related groups by non-Medicare payers.
- Author
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Carter, GM, Jacobson, PD, Kominski, GF, and Perry, MJ
- Subjects
Biochemistry and Cell Biology ,Biomedical and Clinical Sciences ,Biological Sciences ,Clinical Sciences ,Neurosciences ,Clinical Research ,Good Health and Well Being ,Data Collection ,Diagnosis-Related Groups ,Health Benefit Plans ,Employee ,Health Services Research ,Insurance Carriers ,Insurance ,Hospitalization ,Managed Care Programs ,Medicaid ,Models ,Organizational ,Prospective Payment System ,Rate Setting and Review ,United States ,Workers' Compensation ,Public Health and Health Services ,Health Policy & Services ,Biochemistry and cell biology ,Clinical sciences - Abstract
Medicare's prospective payment system (PPS) for hospital cases is based on diagnosis-related groups (DRGs). A wide variety of other third-party payers for hospital care have adapted elements of this system for their own use. The extent of DRG use varies considerably both by type of payer and by geographical area. Users include: 21 State Medicaid programs, 3 workers' compensation systems, the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), more than one-half of the Blue Cross and Blue Shield Association (BCBSA) member plans, several self-insured employers, and a few employer coalitions. We describe how each of these payers use DRGs. No single approach is dominant. Some payers negotiate specific prices for so many combinations of DRG and hospital that the paradigm that payment equals rate times weight does not apply. What has emerged appears to be a very flexible payment system in which the only constant is the use of DRGs as a measure of output.
- Published
- 1994