Diagnosis-Related Group

What Does Diagnosis-Related Group Mean?

A diagnosis-related group (DRG) is a classification of hospital patients grouped together for the purpose of health insurance billing. DRGs enable both hospitals and insurers to understand the patient’s diagnosis and the financial implications associated with that diagnosis.

Insuranceopedia Explains Diagnosis-Related Group

Some diagnosis-related groups (DRGs) are associated with more expensive claims than others. For instance, a cancer diagnosis typically places a patient in a more costly DRG compared to a patient with a broken ankle, which would fall into a less expensive group.