Question

Which of the following statements is true about diagnosis-related groups (DRGs)?

Multiple Choice

• DRGs are the basis for a cost accounting method that groups costs together by departments performing the services.

• A DRG is a case-mix classification scheme that is used to determine the payment provided to the hospital for inpatient services, regardless of how much the hospital spends to treat a patient.

• The federal Medicare system of retroactive payment for services depends on DRGs.

• The DRGs method is the prevailing practice of billing third-party payors for a health care organization's average cost for providing care for locally defined similar medical conditions.

Answer 1

Correct answer:

Option(2) is a correct answer that is a A DRG is a case-mix classification scheme that is used to determine the payment provided to the hospital for inpatient services, regardless of how much the hospital spends to treat a patient. The role of DRG is to maintain the balance fee structure of all Hospitals and to get an exact payment structure to patients. It initiates to get hospital service to patients at fair cost.

Incorrect answers:

Option (1) or DRGs are the basis for a cost accounting method that groups costs together by departments performing the services is incorrect answer.

Option (3) or The federal Medicare system of retroactive payment for services depends on DRGs is incorrect answer.

Option (4) or The DRGs method is the prevailing practice of billing third-party payers for a health care organization's average cost for providing care for locally defined similar medical conditions is incorrect answer.

So correct answer is option (2)