Diagnosis-related groups (DRGs) are the standard envisioned within the Cyprus General Healthcare System (GHS—or commonly referred to as “GESY”) as the process by which public and private hospitals will be reimbursed for their services.
As part of the GHS implementation, hospitals will need to employ a customised DRG system, with a catalogue of DRG codes and related definitions. It is envisioned that this will enhance efficiency in the delivery of hospital services, more so than other hospital payment models. In this paper, Milliman’s Nicholas Kallis considers the initial development of the DRG system in the United States to assess whether or not it’s worth implementing in Cyprus, and in what form.
This paper is the first in a series about DRG systems. The series will cover the definition and objectives of these systems. The papers will also explore how different nations have developed and adopted the payment mechanism and their main advantages and disadvantages.