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The strategic impact of revised DRG payments

With the expected reconfiguration of diagnosis-related groups (DRG) by the CMS, the healthcare industry is on the eve of a seismic change in hospital revenue reimbursement. The new configuration is a modification to the Inpatient Prospective Payment System (IPPS). Surprisingly, other than running the numbers and issuing a cursory first-pass analysis, many hospitals and health systems are not undergoing the kind of in-depth review and evaluation that the IPPS merit. Healthcare leaders need to recognize that much of their world is about to change-prompting a veritable paradigm shift in long-range planning considerations.