The New Jersey Division of Medical Assistance in the US is establishing a new diagnosis-related group (DRG) rate-setting methodology.

The methodology uses a state-wide rate per case, based on 2003 cost and 2006 paid claims. The new DRG rates will be applicable to general acute care hospitals and will compensate the hospitals for Medicaid fee-for-service inpatients.

The DRG rates will also be used to price inpatient charity care claims to determine annual charity care subsidy payments to hospitals, effective from 1 August 2009.

By staff writer.