Passed by the Florida Legislature in 2012 Transitioned Medicaid hospital inpatient payment from per diem to a DRG system. Payments are now made based on acuity not on length of stay. Applies to all hospitals except inpatient psychiatric hospitals Implemented in 2013
Payment based on the following: ◦ Diagnosis ◦ Surgical procedures performed, if any ◦ Patient age ◦ Patient gender ◦ Discharge status
Each diagnosis is assigned a DRG code Each DRG code is assigned a relative weight which indicates the amount of resources required to treat a patient with that diagnosis DRG rate for an average Florida hospital admission is 1.0 and can be used to determine the complexity of each diagnosis. Example: If the base payment is $3000 and a DRG has a relative weight of 2.0 the stay requires 2 x the resources as an average stay so the payment would be $6000.
DRG payments reward hospitals that decrease the cost of a stay Hospitals that provide complete and accurate coding of accounts benefit if they have captured all of the patient’s diagnoses and conditions If you are not capturing the acuity of the patient with your coding you may be losing money
DRG base payments can be increased by a “Policy Adjustor” multipliers that are intended to help protect access to care. Provider Adjusters are applied for rural hospitals and hospitals with high Medicaid utilization Transfers: Payment is usually decreased if a patient is transferred Cost outlier adjustments may be applied Charge cap: payment will be the lesser of DRG payment or charge amounts and%20Awareness%20Guide.pdf
%20Changes.pdf New for Fiscal year 2015/2016
Original base payment $ 2015 General Appropriations Act (GAA) required AHCA to apply adjustments to the base rate, complex calculation 3/2016 through 6/2016 base rate recalculated will be a decrease of 4.9% $
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DRG Pricing Page: ves/Provider_DRG/tabId/91/Default.aspx ves/Provider_DRG/tabId/91/Default.aspx DRG Fiscal Year Changes [459KB] *New 08/03/15* DRG Fiscal Year Changes [360KB] DRG Quick Reference and Awareness Guide [1739KB] DRG Frequently Asked Questions (FAQ) [991KB] Understanding Diagnosis Related Groups (DRG) Training Presentation [1587KB] DRG Field Services Representatives Area Map [390KB] DRG Fiscal Year Changes DRG Fiscal Year Changes DRG Quick Reference and Awareness Guide DRG Frequently Asked Questions (FAQ) Understanding Diagnosis Related Groups (DRG) Training Presentation DRG Field Services Representatives Area Map Public/DRG%20PRICING/Understanding_Diagnosis_Related_G roups_(DRG)_updates_post_0701.pdf