Implementation of a Severity-adjusted Diagnosis-related Groups Payment System in a Large Health Plan.

The article describes the All Patient Refined Diagnosis Related Group (APR-DRG), an inpatient payment system which replaced the All-Payer Diagnosis Related Group payment methodology in the Des Moines, Iowa-based Wellmark Blue Cross and Blue Shield regional commercial payer. The transition is part of a strategic redesign of hospital payment systems with the intent to control costs and reward the efficiency and quality of hospitals.