Identify where diagnosis-related groups (DRGs) are primarily used.

Question

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DRGs are primarily used in prospective payment systems, where healthcare providers are paid a fixed amount for each patient based on their diagnosis or medical condition. This helps to control costs and incentivize efficient care delivery. DRGs are not used in retrospective payment systems where providers are reimbursed based on actual costs incurred, and are not typically used by private insurance companies or in current reimbursement systems.

Identify Where Diagnosis-Related Groups (DRGs) Are Primarily Used