What is it about?
Procedures typically conducted by Orthopedic surgeons are also conducted in other specialties. However, the HRG tariff assumes that all procedures cost the same irrespective of the setting in which they are conducted. This acts to depress the price of most HRGs conducted in Orthopedics.
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Why is it important?
The English HRG Tariff (similar to DRGs elsewhere) has many fundamental flaws. These flaws are seldom openly discussed but can lead to financial imbalance and underpayment for more specialized hospitals.
Perspectives
In my opinion the English HRG tariff is a very poor example of a costing and payment system. There are multiple layers of serious flaws which have never been discussed. See wider discussion at http://www.hcaf.biz/2010/Publications_Full.pdf
Dr Rodney P Jones
Healthcare Analysis & Forecasting
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This page is a summary of: Costing orthdopaedic interventions, British Journal of Healthcare Management, December 2008, Mark Allen Group,
DOI: 10.12968/bjhc.2008.14.12.31792.
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