Table 4. Means and standard deviations¹ of percent differences² between charge and cost weights, by recalibration method and magnitude of weight and volume of diagnosis-related group (DRG).

Selected DRG weights	Recalibration method
	Original		Current		Hospital relative value
	Mean	Standard deviation	Mean	Standard deviation	Mean	Standard deviation
By magnitude
All cost or charge	−0.96	5.05	−0.76	4.79	−0.52	4.22
Top 25 percent cost	1.52	5.26	1.37	4.79	1.12	4.06
Middle 50 percent cost	−1.76	3.58	−1.40	3.53	−0.95	3.49
Bottom 25 percent cost	−2.27	6.28	−2.03	6.06	−1.49	5.37
Top 25 percent charge	1.63	5.17	1.48	4.76	1.59	3.98
Middle 50 percent charge	−1.75	3.47	−1.44	3.52	−1.47	3.18
Bottom 25 percent charge	−2.44	6.34	−2.04	6.07	−1.49	5.37
By volume
Top 25 percent	−0.65	4.82	−0.05	4.80	0.60	4.66
Middle 50 percent	−1.34	5.44	−1.13	5.16	−0.91	4.47
Bottom 25 percent	−0.55	4.55	−0.74	4.08	−0.82	3.34

¹Means and standard deviations are case weighted. Quartiles for each method were determined empirically with case weighting.

²Charge weight minus cost weight as a percentage of cost weight.

SOURCE: Health Care Financing Administration, Bureau of Data Management and Strategy: Data from the 1984 Medicare Cost Report File and from the 1984 Medicare 20-Percent Stay File.