Medicare's diagnosis-related group (DRG) system has gone through incremental changes since its inception in 1983, but never has there been a change like this. The move toward Medicare Severity DRGs (MS-DRGs) will allow these inpatient codes to convey more detailed information, reflecting the severity of different conditions.

The transition is supposed to be cost-neutral for Medicare, but there are sure to be distinct winners and losers among hospitals and health plans as they implement MS-DRGs. Find out more in this white paper.