How diagnosis-related group 559 will change the US Medicare cost reimbursement ratio for stroke centers

Bart M Demaerschalk1, Donna L Durocher

  • 1Department of Neurology, Mayo Clinic, Scottsdale, AZ 85259, USA. Demaerschalk.Bart@mayo.edu

Stroke
|March 3, 2007
PubMed

Insights

Acute ischemic stroke thrombolysis is cost-effective for society but costly for hospitals. The new Diagnosis-Related Group 559 significantly improves hospital reimbursement, making acute stroke care more economically viable.

Area of Science:

  • Health Economics
  • Neurology
  • Healthcare Management

Background:

  • Thrombolysis for acute ischemic stroke offers societal cost savings.
  • Hospitals providing acute stroke care face financial challenges due to costs exceeding reimbursement.
  • The introduction of Diagnosis-Related Group (DRG) 559 by Medicare aimed to address this imbalance.

Purpose of the Study:

  • To determine the total cost and reimbursement for acute stroke treatment with thrombolysis.
  • To analyze the economic impact of DRG 559 on hospital finances for acute stroke care.

Main Methods:

  • Data collected from September 2001 to December 2004 for patients receiving thrombolysis for acute stroke.
  • Calculated hospital costs and reimbursement per patient.
  • Analyzed financial data using a cost-reimbursement ratio, both before and after the implementation of DRG 559.

Main Results:

  • Sixty-seven patients were analyzed (mean age 72, mean length of stay 4.4 days).
  • The cost-reimbursement ratio was 1.41 before DRG 559.
  • The estimated cost-reimbursement ratio after DRG 559 was 0.82, indicating improved financial viability.

Conclusions:

  • Hospital costs for acute ischemic stroke thrombolysis historically exceeded Medicare reimbursement.
  • The implementation of DRG 559 is projected to establish a favorable cost-reimbursement ratio for hospitals.
  • DRG 559 is expected to improve the economic sustainability of acute stroke care centers.
Abstract

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