What is the main feature of the Diagnosis-Related Groups (DRGs) payment system?

The main feature of the Diagnosis-Related Groups (DRGs) payment system is that payment is fixed based on the principal diagnosis. This means that hospitals receive a predetermined rate for each patient admission, which is determined by the patient's primary diagnosis as classified within the DRG system. This fixed payment structure incentivizes efficiency, as hospitals are encouraged to manage costs and resources effectively to ensure they cover their expenses while providing quality care within the flat rate received for that diagnosis.

By establishing a single payment amount for a specific diagnosis, the DRG system helps standardize reimbursements across similar patient cases, simplifying the billing process and reducing the administrative burden on healthcare providers. This reimbursement approach contrasts with other systems that might charge based on the actual services provided or patient satisfaction metrics, emphasizing diagnosis over the quantity of care.