Where are DRGs going?
The diagnosis related groups (DRG) classification of acute inpatient episodes was developed in the United States to meet the perceived needs of the U.S. hospital sector. Thus far, it has been used in Australia without significant modification. In this paper, we assess the DRG system in terms of basic principles of classification design and suggest some possible revisions which might be considered if there were reason to contemplate major changes for Australia. We conclude by making some suggestions on the process of managing the development of DRGs in Australia.