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Medicare Severity-DRG System

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Medicare Severity-DRG System
MS-DRG
Miranda Valcourt
DeVry University

MS-DRG Medicare severity diagnosis-related group or MS-DRG is Medicare refinement to the diagnosis-related group (DRG) classification system, which allows for payment to be more closely aligned with resource. The Medicare Severity-DRG (MS-DRG) is the most commonly used DRG system, because it governs the ever growing ranks of Medicare patients (Bushnell, 2013). MS-DRG has a payment rate called a weight (Casto, 2013). Higher weights are associated with groups in which patients require more resources for care and treatment. Higher resource consumption is related to higher intensity of services due to the severity of illness or the type of services needed for the care and treatment, such as

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