Definition: a program in the U.S. for billing for medical and especially hospital services by combining diseases into groups according to the resources needed for care, arranged by diagnostic category. A dollar value is assigned to each group as the basis of payment for all cases in that group, without regard to the actual cost of care or duration of hospitalization of any individual case, as a mechanism to motivate health-care providers to cut costs.
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Examples: glitazone, GI cocktail, etc.