MS-DRG

Medicare Severity Diagnosis Related Group. Inpatient hospital payment classification with 770 active DRGs in v43. Each DRG has a relative weight that determines payment. The DRG is assigned by a grouper algorithm based on principal diagnosis, secondary diagnoses (especially CC and MCC codes), procedures, age, sex, and discharge status. Documenting one MCC can shift a stay from a base DRG to the with-MCC variant, often a 30 to 80 percent payment increase.