Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

Casemix classification systems.

R B Fetter1

  • 1Yale University, USA.

Australian Health Review : a Publication of the Australian Hospital Association
|November 11, 1999
PubMed
Summary
This summary is machine-generated.

Hospital cost containment efforts, spurred by Medicare in 1965, led to the development of diagnosis related groups (DRGs). This paper details the evolution of DRGs from their inception to the All Patient Refined DRGs in 1991.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

A system for cost and reimbursement control in hospitals. 1976.

The Yale journal of biology and medicine·2002
Same author

Diagnosis-related group refinement with diagnosis- and procedure-specific comorbidities and complications.

Medical care·1995
Same author

Inventors of DRGs look at PPS now. Interview by Marybeth Burke.

Hospitals·1992
Same author

Hospital payment based on diagnosis-related groups.

Journal of the Society for Health Systems·1992
Same author

Procedure codes: potential modifiers of diagnosis-related groups.

Health care financing review·1991
Same author

Improving DRGs. Use of procedure codes for assisted respiration to adjust for complexity of illness.

Medical care·1989
Same journal

Evolution of the health workforce: lessons from the past for the future.

Australian health review : a publication of the Australian Hospital Association·2026
Same journal

Non-prescribed substance use among hospital inpatients in a large Australian hospital: a case series.

Australian health review : a publication of the Australian Hospital Association·2026
Same journal

Corrigendum to: Changes in size and co-location of health services for Australian general practice, 2000-2016.

Australian health review : a publication of the Australian Hospital Association·2026
Same journal

Data linkage for healthcare research: basics and important considerations.

Australian health review : a publication of the Australian Hospital Association·2025
Same journal

Corrigendum to: Chronic breathlessness is associated with much longer lengths of hospital stay.

Australian health review : a publication of the Australian Hospital Association·2025
Same journal

Corrigendum to: Telehealth use in Voluntary Assisted Dying: a systematic review.

Australian health review : a publication of the Australian Hospital Association·2025
See all related articles

Area of Science:

  • Health Services Research
  • Health Economics
  • Hospital Administration

Background:

  • Casemix classification for hospital management has historical roots but was technologically constrained.
  • The introduction of Medicare in the US in 1965 prompted efforts to control rising healthcare costs.
  • Measuring hospital production became a focus for cost containment strategies.

Purpose of the Study:

  • To trace the historical development of diagnosis related groups (DRGs).
  • To examine the evolution of DRG systems from early versions to more refined classifications.
  • To understand the technological and policy drivers behind DRG development.

Main Methods:

  • Historical analysis of casemix classification systems.
  • Review of policy changes and technological advancements impacting hospital management.

Related Experiment Videos

  • Examination of the progression of DRG structures over time.

    • Main Results:

    • The concept of casemix management predates modern technology.
    • Medicare's implementation in 1965 was a catalyst for developing DRGs to manage costs.
    • DRGs evolved significantly, culminating in the All Patient Refined DRGs by 1991.

    Conclusions:

    • DRG systems are a product of efforts to link hospital payments to patient complexity and resource use.
    • Technological advancements were crucial for the practical implementation and refinement of DRGs.
    • The evolution of DRGs reflects a continuous effort to improve hospital efficiency and cost management.