Global Development and Implementation of Diagnosis Related Groups (DRG): A Comparative Overview

On June 2, the National Health and Family Planning Commission held a launch meeting in Shenzhen for the pilot program on payment reform based on Diagnosis Related Groups (DRG). Three public hospitals in the cities of Shenzhen (Guangdong Province), Karamay (Xinjiang Uygur Autonomous Region), and Sanming (Fujian Province), along with three provincial- or municipal-level hospitals (the Affiliated Union Hospital of Fujian Medical University, Fuzhou First Hospital, and Xiamen First Hospital), were selected as DRG pilot sites. As one of the 70 key healthcare reform initiatives prioritized by the government in 2017, the DRG-based payment reform has officially entered its pilot phase. To provide a clearer understanding of the origins and evolution of DRG, as well as its development in other countries, Eric, an analyst at Remens Capital, has compiled a comprehensive summary.