Glossary Term
DRG (Diagnosis-Related Groups)
Definition
Diagnosis-Related Groups (DRG) is a patient classification system used in healthcare to categorize hospital cases into groups based on diagnosis, treatment, and other factors such as patient age and comorbidities. DRGs are widely used for reimbursement purposes, particularly in systems like Medicare, to standardize payments for inpatient hospital services.
Relevance to the MedTech Industry
DRGs impact MedTech companies by influencing hospital purchasing decisions for devices and technologies. Hospitals prioritize products and solutions that help optimize resource utilization, improve clinical outcomes, and align with DRG-based reimbursement rates.
Additional Information & Related Terms
Healthcare Economics The study of costs and outcomes associated with medical technologies within systems like DRG-based reimbursement.
Value-Based Healthcare Aligns with DRG systems by focusing on outcomes and cost-efficiency.
Hospital Procurement DRG influences decisions on purchasing medical devices.
Clinical Outcomes Key metrics that align with DRG goals, such as reducing length of stay or readmissions.