The Centers for Medicare and Medicaid Services (CMS) asked the RAND Corporation to evaluate alternative systems that might be used by the PPS to classify discharges into severity-adjusted diagnosis-related groups. This interim report presents the preliminary results.
CMS proposed in the Fiscal Year 2008 (FY08) to adopt a different system (Medicare-Severity or MS-DRGs.
The addendum reports findings with respect how the MS-DRGs compare to the other severity-adjusted systems.