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Relating Diagnosis-Related Groups: What Germany And The United States Can Learn From Each Other About Aute-Care Payment Systems, Timothy D. Martin

Timothy D Martin

In recent years, several countries have adopted diagnosis-related group (DRG) payment systems modeled after the system Medicare uses to reimburse providers for acute-care inpatient treatment. This paper compares the Medicare DRG system with the German DRG system and suggests improvements that might help both systems. First, Germany should proceed carefully in its attempt to reduce the length of hospital visits because its universal payment mechanism cannot shift costs to the private sector so inadequate payment could degrade the quality of care. Second, because both countries struggle with incorporating new treatments and technologies into their payment systems, they should both consider …