The purpose of the DRGs is to relate a hospital's case mix to the resource demands and associated costs experienced by the hospital.

How have DRG impacted the health care?

Conclusion: DRGs provided a way to prevent the collapse of the Medicare program but have also required stricter criteria for hospital admissions. DRGs remain in evolution and under evaluation for expansion into other health care settings.

Why is it important to be aware of diagnostic related groups DRGs?

Diagnosis-related groups (DRGs) are by far the most important cost control and quality improvement tool that governments and private payers have implemented. ... Virtually all current tools used to manage health care costs and improve quality do not have these characteristics.