DRGs and Hospital Readmissions

Irwin Goldberg, Perry A. Lambird, Karen M. Magnuson, Peter Manu, Ronald B. Goodspeed, Gilbert S. Omenn, Douglas A. Conrad, Earl P. Steinberg, Gerard F. Anderson

Research output: Contribution to journalLetterpeer-review


To the Editor: There are three aspects of the Sounding Board article by Omenn and Conrad, “Implications of DRGs for Clinicians,” that require clarification (Nov. 15 issue).* The prospective payment system with its diagnosis-related groups (DRGs) is fundamentally a program of price or rate control. Although it is offered as a transitional step, it is counter to the administration's stated goal of introducing competition into the health care field. Predetermined set prices without regard to negotiation are regulatory mechanisms. First of all, it is only partially true that DRGs constitute a move to a cost-containment or deflation mechanism. It would.

Original languageEnglish (US)
Pages (from-to)793-794
Number of pages2
JournalNew England Journal of Medicine
Issue number12
StatePublished - Mar 21 1985

ASJC Scopus subject areas

  • Medicine(all)


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