Healthcare system and aspects of healthcare economics

With annual costs of nearly 60 billion EUR, hospitals account for a large portion of the total costs of the German statutory health insurance, which stand at 178 billion EUR. The introduction of diagnosis-related groups (DRGs) was intended to reduce the demands on the healthcare system and promote a more economic approach in the system. This article presents the current DRGs since the discontinuation of care payments and explains how profits can be made applying the DRG system. Important issues such as base rate, cost weight, case mix or case mix index are discussed. The key figures for hospitals in terms of budget calculation are presented. Average inpatient stays were shortened following the introduction of DRGs in Germany. The relevance of surcharges and deductions in the case of non-observance of prescribed patient stays is discussed.