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Medicare DRG Overview: How It Influences Healthcare Cost Efficiency

Healthcare costs are still a major factor in decision-making throughout the healthcare system of the United States. Hospitals are under pressure every single day. Leaders must balance budgets, staffing, and outcomes while meeting strict Medicare rules. In this environment, the Diagnosis-Related Group Framework plays a quiet but powerful role. Often shortened to Diagnosis-Related Groups DRG, this model shapes how hospitals are paid and how care is delivered.

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