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A Medicare Severity-Diagnosis Related Group (MS-DRG) is a system of classifying a Medicare patientâs hospital stay into various groups in order to facilitate payment of services.
Before going into the structure of the MS-DRG payment system, an understanding of the Uniform Hospital Discharge Data Set (UHDDS) elements used in the system is necessary. An outline of the UHDDS definitions for diagnosis and procedure assignment is included in a 2006 CCS Prep! column on the original Medicare DRGs.he receiving facility receives the full MS-DRG payment. An example of an MS-DRG that meets the post-acute care transfer criteria is MS-DRG 100, Seizures w MCC. Medicare Code Edits (MCE). Under MS-DRGs, Medicare uses the MCE in the processing of IPPS claims.