The computation of a hospital’s average relative weight of diagnoses and treatments provides a metric reflecting the complexity and resource intensity of its patient population. This value is derived by summing the Diagnosis Related Group (DRG) weight for each patient discharged and dividing by the total number of discharges. For instance, if a hospital discharges 100 patients and the sum of their DRG weights is 150, the resulting value is 1.5.
This metric serves as a crucial tool for understanding a healthcare facility’s patient profile and its financial implications. A higher value generally indicates that the hospital is treating more complex and resource-intensive cases, potentially leading to higher reimbursement rates from payers. Historically, its development aimed to standardize payments and improve efficiency within the healthcare system, offering a more equitable approach to funding based on the actual care provided.