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DHA implements Diagnosis-Related Groups

To help insurance companies categorize hospitalization costs

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The Dubai Health Authority (DHA) said it will begin the use of Diagnosis-Related Groups (DRGs) in all hospitals in the city.

The move came into effect in October 2020 after being in planning for over four years, during which active consultation and stakeholder engagement with the private sector took place.

Use of DRGs helps health insurance companies categorize hospitalization costs. Rather than paying the hospital for each specific service that was provided, a private insurer will pay the hospital a predetermined amount based upon patients’ DRGs. This is determined using a variety of metrics, including patient diagnosis, prognosis and other factors.

In addition to controlling the rising cost of health care, eliminating waste, helping to objectively distribute resources, and create creative incentives to deliver cost effective and high quality care, DRGs will also help to increase transparency and monitor quality across hospitals and countries.

It will additionally maintain high standards of medical practice, clinical pathways and protocols to ensure that hospitals and health care providers adhere to unified protocols of health.

The DRG is a widely adopted model used in many countries, including Canada, Germany, New Zealand, Australia, Singapore and Hong Kong.