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DRGs and RUGs

DRGs and RUGs

Q Q1: Explain how DRGs pay for Hospitals and RUGS pays for SNFs. You may need two articles with one to explain DRGs and the other to explain RUGS. Be specific on the payment types (are both Medicare?) and give one example from DRGs and one from RUGS, and how the funding may impact type of care.

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The Diagnostic Related Grouping (DRG) system sets a fixed kind of pay scale for the hospital services. Following the DRG pay, it is easy for making the payment for the stay of the patients in hospital. The DRG payment is based on the gender, age, surgical procedures and diagnosis of the patients. Even DRG system has an intention to standardize the hospital reimbursement.