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Medicare Severity – Diagnosis Related Groups, or MS-DRGs, are payment groups designed for Medicare beneficiaries.
Patients who have similar clinical characteristics and similar treatment costs are assigned to a MS-DRG.
The MS-DRG will be linked to a fixed payment amount based on the average treatment cost of patients in the group.
Hospitals provide this information on their bills… and Medicare uses this information to decide how much the hospitals should be paid.
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