The practical application of DRG and casemix information in planning and funding models

There is concern in some quarters about the practical application of casemix information and Diagnosis Related Groups (DRGs). Hospital executive and financial management staff have generally played an observation role as debate about technical issues continue. Notwithstanding, there are already many practical applications of DRGs in strategic service planning, and more recently, in drawing a closer and quantifiable relationship between casemix and costs. These techniques have been developed and applied in a wide variety of situations, from small rural, to larger tertiary referral hospitals. Ongoing use and refinement of these methods has led to the conceptual development of a financial and service planning tool, which has the potential to have wide practical application in the very short term. A positive approach to such a model will allow philosophical and technical debates to continue in the interim, without impeding the further development and application of useful casemix information, particularly at the hospital management level.