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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.
nursing diagnosis see nursing diagnosis. physical diagnosis diagnosis based on information obtained by inspection, palpation, percussion, and auscultation. diagnosis-Related Groups (DRG) a system of classification or grouping of patients according to medical diagnosis for purposes of paying hospitalization costs. In 1983, amendments to Social Security contained a prospective payment plan for most Medicare inpatient services in the United States.