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Diagnosis-related groups: implications for psychiatry

Published online by Cambridge University Press:  02 January 2018

Femi Oyebode*
Affiliation:
John Conolly Hospital, Birmingham B45 9BD
Stuart Cumella
Affiliation:
John Conolly Hospital, Birmingham B45 9BD
Gillian Garden
Affiliation:
John Conolly Hospital, Birmingham B45 9BD
Sharon Binyon
Affiliation:
John Conolly Hospital, Birmingham B45 9BD
*
Correspondence
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The escalating cost of medical care in most industrial countries has given impetus to several different strategies designed to impose limitations on cost and introduce efficiency into health care systems. In the United States of America, legislation was passed in 1983 to introduce a system of prospective payment for Medicare hospital expenditures. This change was a departure from the previous cost based reimbursement method and was based upon a categorisation of medical conditions into discrete groups termed diagnosis-related groups (DRGs). The intention of the American Congress in passing the legislation was to encourage hospitals to reduce cost without sacrificing quality of care.

Type
Articles
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution (CC-BY) license (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Copyright
Copyright © Royal College of Psychiatrists, 1990

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