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Updated: Oct 24, 2026

Measuring the Functional Abilities of Children Aged 3-6 Years Old with Observational Methods and Computer Tools
Published on: June 20, 2020
Diagnosis related groups, refined diagnosis related groups and pediatric modified diagnosis related groups in
Insights
Refinement Diagnosis Related Groups better measure children's hospital output than Version 5 DRGs. Minor modifications could align pediatric and general hospital systems for improved healthcare analysis.
Area of Science:
- Health Services Research
- Pediatric Healthcare Management
- Hospital Performance Metrics
Background:
- Evaluating hospital output is crucial for resource allocation and quality assessment.
- Existing systems like Diagnosis Related Groups (DRGs) require refinement for specialized pediatric care.
- Australian children's hospitals need a robust system to measure their unique service delivery.
Purpose of the Study:
- To assess the effectiveness of different Diagnosis Related Groups (DRGs) in measuring the output of specialist children's hospitals.
- To compare the performance of Version 5 DRGs, Refinement DRGs, and Pediatric Modified DRGs.
- To identify potential improvements for a unified hospital output measurement system.
Main Methods:
- Analysis of Australian discharge data from 1987-88 for patients aged 0-18 years.
- Inclusion of data from three major children's hospitals and four district hospitals.
- Statistical evaluation of the proportion of variation in length of stay explained by each DRG system.
Main Results:
- Refinement DRGs demonstrated a superior ability to explain the variation in length of stay compared to Version 5 DRGs.
- Pediatric Modified DRGs (USA) offered limited overall advantages over Refinement DRGs for Australian children's hospitals.
- Specific Pediatric Modified DRG categories showed potential benefits that could be integrated into Refinement DRGs.
Conclusions:
- Refinement DRGs provide a more accurate measure of specialist children's hospital output than Version 5 DRGs.
- Further refinement of the Refinement DRG system could incorporate beneficial aspects of Pediatric Modified DRGs.
- A modified Refinement DRG system could serve as a unified measure for both pediatric and general hospital output.
Abstract:
The value of Diagnosis Related Groups, Refinement Diagnosis Related Groups and Pediatric Modified Diagnosis Related Groups in measuring the output of specialist children's hospitals was evaluated by the examination of discharge data for 1987-88 from three major Australian children's hospitals and four district hospitals. The study included all patients aged 0-18 years but excluded those with specific neonatal diagnoses. Findings indicated that Refinement Diagnosis Related Groups seem to give a better measure of the output of specialist children's hospitals than Version 5 Diagnosis Related Groups in that they explained a higher proportion of variation of length of stay. Pediatric Modified Diagnosis Related Groups developed in the United States of America for specialist children's hospitals overall did not seem to have major advantages over Refinement Diagnosis Related Groups but there were some specific Pediatric Groups that appeared beneficial. Further modification of the Refinement Diagnosis Related Groups could allow these advantages to be incorporated. Overall it seems preferable for there to be a similar system measuring output of both children's hospitals and general hospitals and this could be achieved by some minor changes to the Refinement Diagnosis Related Groups.
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