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February 7, 2020 | 12:30 p.m. - 2:00 p.m.
Category: Seminar
Location: Faculty/Administration #2339 | Map
656 W. Kirby
Detroit, MI 48202
Cost: Free
Audience: Academic Staff, Alumni, Community, Current Graduate Students, Current Undergraduate Students, Faculty, Staff

Amanda Cook

Department of Economics

Bowling Green University

Better Aligning Hospital Costs and Payments:  Hospital Specific Relative Value Method for DRG Payments


The Center for Medicaid and Medicare Services (CMS) uses a DRG- based reimbursement system for inpatient hospitals stays. The method used by CMS to calculate Diagnosis Related Group (DRG) weights do not align payments and costs. We demonstrate an HSRV weighting system has two benefits: first it removes the financial incentives for hospitals to expand specialized services
and aligns costs with payments for more mundane illnesses. It also corrects for overpayment associated with indirect medical education to teaching hospitals and the subsequent underpayment to non-teaching hospitals.

For more information about this event, please contact Shooshan Danagoulian at 313-577-1078 or