Nurse Executive Certification Exam Prep

Answer: A - Diagnosis-Related Groups (DRGs) determine the amount of reimbursement that Medicare will provide. It is a prospective reimbursement method that is based on the patient’s medical diagnosis, necessary procedures, and their needs, rather than on the length of stay or the actual cost of services provided. It is, therefore, a prospective, rather than a retrospective, type of reimbursement.