Comparative Performance of the MS-DRGS and RDRGS in Explaining Variation in Cost for Medicare Hospital Discharges

by Barbara O. Wynn

Full Document

FormatFile SizeNotes
PDF file 0.2 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Health Systems Consultants, Inc. asked RAND to assess the comparative ability of two severity-adjusted patient classification systems to explain variation in Medicare costs per discharge. The two systems evaluated in the study are the Medicare-severity adjusted DRG (MS-DRG) system that Medicare adopted effective October 1, 2007 and Health System Consultants, Inc.'s Refined-DRGs (RDRGs), version 21.0/24.0. The results should be of interest to parties who use a classification system to assign hospital inpatients to groupings based on expected resource needs.

The research in this report was prepared for Health Systems Consultants, Inc. and conducted by RAND Health.

This report is part of the RAND Corporation Working paper series. RAND working papers are intended to share researchers' latest findings and to solicit informal peer review. They have been approved for circulation by RAND but may not have been formally edited or peer reviewed.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.