HCFA to add measure of severity to DRGs. Part I

HCFA plans refinements to its DRG system of Medicare provider reimbursement incorporating a measure of severity of illness. This first of a series of articles offers specifics of HCFA's current thinking along with its methodology and reasons for the refinements. Part two, to be published in the July/August 1994 issue, will present additional analyses plus an analysis of what effect the proposed changes will have on hospitals. Following HCFA's adoption of the refinements, Health Systems REVIEW will report on the result of provider input and the final form of the new DRG system.