A classification of patients by diagnosis or surgical procedure (sometimes including age) into major diagnostic categories (each containing specific diseases, disorders, or procedures) for the purpose of determining payment of hospitalization charges, based on the premise that treatment of similar medical diagnoses generate similar costs.
A scheme for billing for medical and especially hospital services by combining diseases into groups according to the resources needed for care, arranged by diagnostic category. A dollar value is assigned to each group as the basis of payment for all cases in that group, without regard to the actual cost of care or duration of hospitalization of any individual case, as a mechanism to motivate health-care providers to economise.
(05 Mar 2000)
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