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TeachMeFinance.com - explain Diagnosis-Related Groups Diagnosis-Related Groups The term 'Diagnosis-Related Groups ' as it applies to the area of Medicare in the United States can be defined as ' A classification system that groups patients according to diagnosis, type of treatment, age, and other relevant criteria. Under the prospective payment system, hospitals are paid a set fee for treating patients in a single DRG category, regardless of the actual cost of care for the individual'. Previous 5 Terms: diacoustic diadermic diagenesis Diagnosis Diagnosis Code Next 5 Terms: Diagnostic Model Diagnostic tool diagnostic trials diagometer diagonal About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.