Using diagnosis-related groups in the NHS

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Abstract
Diagnosis-related groups (DRGs) have attracted much attention because of their use as a means of cost containment in the USA. The adaptation of this technique for use in the UK and initial results of the application to a 10 per cent sample of hospital discharges in England and Wales (HIPE1979) are described. The potential difficulties of applying the technique in health service management in the UK are discussed, dealing in particular with the statistical and costing aspects.

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