The Medicare DRGs: Efficiency and Organizational Rationality
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Should Insurers Pay the Same Fees Under an All-Payer System?
Medicare's use of diagnosis-related groups (DRGs) and the resource-based relative value scale (RBRVS) has led to interest in developing a national all-payer system in which insurers use the same payment methods and payment rates. Using data for 81 high-volume DRGs from 457 California hospitals, we conclude that a single set of rates for hospital care would not be appropriate. On average, Medica...
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