The diagnosis-related group (DRG) system adopted by Medicare since 1983 has had the following effects, except

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The DRG system is designed to incentivize hospitals to provide efficient care and reduce costs by providing a fixed payment for each patient's treatment, regardless of the actual resources used. As a result, hospitals have an incentive to reduce the amount of resources used for each patient and to treat more patients on an outpatient basis. However, there is no evidence to suggest that the DRG system has led to an increase in the average length of a hospital stay; in fact, the opposite is likely true, as hospitals are incentivized to release patients as quickly as possible in order to reduce costs.

The Diagnosis-Related Group (DRG) System Adopted by Medicare Since 1983