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NJ Hospital Price Compare

Glossary

The following list defines many of the words and phrases users will encounter on this site. This information does not constitute, nor should it substitute for, medical advice. Disclaimer.

Charges - The published price that hospitals set as a starting point for negotiating with insurance companies, rarely the amount that patients actually pay. Roughly 10 percent or less of hospital claims statewide are paid at the "charges" rate.

Diagnosis Related Group (DRG) - A system of classifying hospital services based on the presence of similiar diagnosis and procedures used by Medicare to pay hospitals a fixed rate based on a specific diagnostic group.

Major Diagnostic Categories (MDC) - A grouping in which similar diagnoses are organized into 25 broader or major diagnostic categories.

Teaching hospital - A hospital that trains medical students and newly graduated physicians called "residents."

Top 25 DRGs
The assignment of the top 25 DRGs is hospital specific. The top 25 DRGs will vary from one hospital to another based on variables such as patient mix, payor mix and service mix.


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