Comparison of alternative relative weights for diagnosis-related groups.
Cotterill, Philip G
Date of Pub
Bobula, Joel; Connerton, Rose E
During this study, we investigated the extent to which diagnosis-related group (DRG) relative weights based exclusively on
charge data differ from DRG weights constructed according to the methodology used in deriving the original relative weights
for the Medicare prospective payment system (PPS). The PPS operating cost weights were based on a combination of cost and
adjusted charge information (Pettengill and Vertrees, 1982). The results of this study reveal only minor differences between
the two sets of weights. Interhospital differences in cost-to-charge ratios do not produce large, arbitrary differences between
charge-based and operating cost weights. Whether the data are standardized for differences in capital and medical education
costs also appears to make little difference.
Medicare : Comparative Study : Cost Allocation/methods : Costs and Cost Analysis/methods : Diagnosis-Related Groups/economics
: Fees and Charges : Prospective Payment System/methods : Rate Setting and Review/methods : Reimbursement Mechanisms/methods
: Statistics : United States : United States Health Care Financing Administration