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History of Transfer DRGs

1999 The Centers for Medicare and Medicaid Services (CMS) initiated a reimbursement methodology related to certain Diagnostic Related Groups (DRGs) involving transfers to post-acute care facilities (e.g., SNF or rehab facility) or to home health care.  Initially, 10 DRGs were involved. 
   
October 2003 29 DRGs are subject to overpayments
   
October 2005 182 DRGs are subject to overpayments
   
October 2006 188 DRGs are subject to overpayments
   
October 2007 273 DRGs are subject to overpayments
   
  In an effort to address these inpatient overpayment issues, “Transfer DRGs” (TDRGs) were established, with corresponding edits, checks and balances incorporated into the CMS payment systems.
   
2008 OIG stated in their 2008 Work Plan that they would be reviewing patient discharges that should have been coded as transfers rather than discharges.  As a result, compliance issues with Transfer DRG regulations are becoming even more prevalent and important for providers and the potential negative impact on a hospital’s reimbursement for Transfer DRGs continues to grow.
   

 

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