Question

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

Answer 1

Ans- Diagnosis related groups are basically patient classification system where all the payments to the hospital are covered for the inpatient instay from the time he is admitted to the discharge.It was first introduced in US when healthcare cost was continuously rising and this was very effective.

Advantages of DRGs-

--The main aim was to follow a procedure to provide repayments from insurance companies that provide financing on behalf of individuals or individuals in return are provided health care services in a fair and equitable manner.

-The provision of health care services in desired quality and characteristic, to facilitate the delivery of health care services in hospitals, to standardize budgeting and cost of services.

-To determine the cost of services in a transparent and realistic manner, to determine the inputs and outputs and accordingly reimburse the service providers.

-DRGs ensure that the resources of health care are used in right amount, right time and right place to avoid unnecessary wastage of the resources.

-To provide effectiveness and efficiency, improvement in performance, providing evidence based decisions of the hospital's.

- Reduced the length of instays at hospital.

Disadvantages of DRGs-

- Sometimes there are less use of resources and patients are underserved too.

- It is increasing general and repeated applications to the hospitals.

--- is not easy to classify the services and products due to the special features of health care services.

- It's not even desirable sometimes to choose the hospitals who choose low weight due to repayments of products añd services.

-Physicians mostly choose their patients as they can the patients with max incomes, and thus they maximize their interests.

- sometimes it restricts access to services requested by more complicated and advanced expertise.

-Sometimes it becomes difficult to identify products and hospitals.

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