What does the acronym "DRG" stand for in medical coding?

The acronym "DRG" stands for Diagnosis-Related Group. This classification system is used mainly in inpatient hospital settings to categorize hospitalization cases into groups that are expected to have similar hospital resource use. The DRG system is essential for determining reimbursement rates for hospitals under Medicare and many private insurance plans. It helps ensure that hospitals are compensated in a standardized manner for the services they provide, facilitating a more uniform approach to hospital billing.

Each DRG represents a bundle of services related to particular medical conditions, allowing for more efficient management of healthcare costs. This coding system is crucial for medical coders, as they need to accurately assign DRGs based on the diagnoses and procedures documented in the patient's medical record, influencing the hospital's revenue cycle.