In what manner are MS-DRGs expected to relate to patient mortality?

MS-DRGs, or Medicare Severity Diagnosis Related Groups, are designed to classify hospital cases into groups that are expected to have similar hospital resource use, thus impacting reimbursement rates. One of their key functions is to account for variation in patient outcomes, including mortality.

Option C highlights that MS-DRGs handle diagnoses associated with mortality differently based on patient outcomes. This is accurate because the MS-DRG system takes into account various factors that can affect mortality rates among patients, such as the severity of the patient's condition and any complications or comorbidities. By doing so, the MS-DRG system ensures that hospitals are reimbursed appropriately based on the complexity and risks involved in patient care, acknowledging that not all patients with the same primary diagnosis will have the same outcomes.

In contrast, while other options reflect misconceptions about the approach MS-DRGs take toward patient outcomes, C accurately reflects the nuanced way MS-DRGs function within the context of healthcare reimbursement. They are not a one-size-fits-all system; rather, they allow for differentiation in handling cases that may involve higher mortality risks, thereby influencing the economic incentives for hospitals to provide appropriate levels of care.