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. Author manuscript; available in PMC: 2023 May 25.
Published in final edited form as: J Health Econ. 2020 May 18;73:102319. doi: 10.1016/j.jhealeco.2020.102319

Table 1.

Hypothetical patients and counterfactual example.

2008 MS-DRG (Post 2007) MS-DRG Weight CMS-DRG (2007 and before) CMS-DRG Weight Change in Weight

Patient 1 200 1.3 124 1.21 .09
Patient 2 200 1.3 124 1.21 .09
Patient 3 200 1.3 124 1.21 .09
Patient 4 201 1.12 124 1.21 −.09
Patient 5 201 1.12 124 1.21 −.09
Patient 6 201 1.12 124 1.21 −.09
Average Change in weight: 0

Notes: This table illustrates for 6 hypothetical patients how, in the absence of upcoding, we would not expect a change in average DRG weight. The column titled MS-DRG weight shows the weight associated with the new DRG post reform. The CMS-DRG weight column shows the DRG the patient would have been assigned if they had been admitted prior to the DRG expansion. The CMS-DRG Weight column shows the weight associated with the CMS-DRG. The column Change in Weight is the difference between MS-DRG Weights and CMS-DRG Weights. The Change in Weight column highlights that in the refinement of DRGs, some patients would be less sick than the average patient in the CMS-DRG, and thus would have negative weights post-reform. Other patients would be sicker than the average patient in the CMS-DRG, and would have a higher weight post-reform.