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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.
To arrive at the reimbursement that a hospital will receive for a particular MS-DRG, the hospital's base rate is multiplied by the MS-DRG weight. In the most simplified terms, the hospital base rate identifies the reimbursement that a hospital would receive for treating the average patient.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.