Florida Medicaid to Implement DRG Payments

Beginning in July, the agency that administers Florida's managed care Medicaid program announced it plans to implement diagnosis-related group payments for hospital stays.

The state's current program pays a per diem for each Medicaid patient a hospital serves based on the hospital's cost structure — not based on the level of care the patient requires. That means treatments for minor conditions are funded at the same rate as major emergency procedures.

Florida's Agency for Health Care Administration, which oversees Medicaid payments, recommended the DRG model, which is used by the federal Medicare program.

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