When hospitals began being reimbursed based on DRG assignment, patient length of stay decreased because:

Question

Quizplus · Accepted Answer

Hospitals were incentivized to discharge patients sooner because they were reimbursed based on DRG assignment. This led to a decrease in patient length of stay. While coding accuracy may have also improved, it was the financial incentive to discharge patients sooner that was the primary reason for the decrease in length of stay. There is no evidence to suggest that patients were less sick.

When Hospitals Began Being Reimbursed Based on DRG Assignment, Patient