What is the difference between DRG weight and the DRG base rate?

• A. The DRG weight is a fixed number; base rate changes with patient age.
• B. DRG weight reflects relative resource use to determine payment amounts, while the base rate is the dollar amount multiplied by the weight.
• C. DRG weight is the dollar amount; base rate reflects resources.
• D. DRG weight is irrelevant to payment; only base rate matters.

Answer: (B)

DRG weight is a relative measure of how much hospital resources a case in a given diagnosis-related group uses, compared with the average case. It reflects resource intensity, not a dollar amount. The DRG base rate is the fixed dollar amount assigned per DRG unit, effectively the price per unit of resource use. Payment is calculated by multiplying the base rate by the DRG weight (with possible adjustments for geography or other factors). For example, with a base rate of $5,000 and a DRG weight of 1.2, the payment would be $6,000 before adjustments. This shows how the weight indicates more or less resource use, while the base rate provides the price per unit of that resource use. The other options conflate dollars with resources or introduce age, which isn’t how DRG payment is determined.