title: Reimbursement under diagnosis-related groups: the Medicaid experience.
abstract: The implementation of the Medicare prospective payment system has sparked the growth of similar Medicaid systems. Eight State Medicaid agencies now employ a system based on diagnosis-related groups (DRG's), and another four State Medicaid agencies are planning to implement such systems in the near future. The eight DRG-based systems in existence in 1986 are examined in this article. Preliminary evidence presented herein indicates that Medicaid DRG-based systems have experienced reduced rates of increase in expenditures for hospital services and that hospital admission rates have not increased under these systems.
mesh_terms: D003953:Diagnosis-Related Groups / Q000191:economics*; D006760:Hospitalization / Q000191:economics*; D008484:Medicaid / Q000458:organization & administration*; D011445:Prospective Payment System; D013219:State Government; D014481:United States