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Diagnostic Related Grouping

Abbreviation: DRG

Definition

Diagnostic Related Grouping (DRG) is a system used in healthcare to classify inpatient hospital cases into groups based on similar clinical characteristics and resource utilization. DRGs are used for payment purposes, allowing hospitals to be reimbursed based on predetermined payment rates associated with each specific DRG. The system promotes efficiency and standardization in reimbursement and resource allocation.