MCOL September 16, 2021
Diagnosis Related Groups (DRGs) was first introduced in the US in the 1980s as a payment methodology for Medicare. After decades of development, implementation and operational improvement, it remains one of the most dominant payment mechanisms by government and private payers, and is also widely used as an analytical and measurement tools in the healthcare industry.
Health policy researchers in China started exploring the DRG methodology in the late 1980s. At the time, coverage and benefit levels varied significantly by employment status and place of residence. Structured claims data with standardized codes were not available back then to support deeper analysis, although the feasibility of implementing DRG was studied in the early-to-mid 1990s[1].
In 2009 China’s State Council issued a...
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