The refined diagnosis related groups system: an early look at its potential for Australia

The DRG patient classification system is widely used in Australia, and its use is likely to increase. However, it has some weakness, including the failure to adequately take account of variations in resource use among patients in the same classes. A new version, called the Refined DRG (or RDRG) system became available in January 1989. Inter alia, it makes better use of data on secondary diagnoses; and defines three or four levels of resource use intensity for all major types of conditions, rather than just two levels for fewer types of conditions. The new system is briefly described. Some preliminary results of its use on Australian data are presented, which suggest that it does have advantages in terms of increased homogeneity of resource use in classes. If the RDRG system is to replace the DRG system as the international standard, there are some important implications for Australia. In particular, it would seem to be advisable for health agencies to plan for its imlementation on a national basis.