DRGs History : The DRGs were originally developed at the Yale University School of Organization and
Management during the 1970’s under contract to the Centers for Medicare and Medicaid Services
(formerly Health Care Financing Administration). The second version and all subsequent versions
of the DRG definitions have been updated by 3M Health Information Systems under contract with
CMS. All versions of the DRGs, since the inception of the Medicare Prospective Payment System,
are summarized in the following table.
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