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Glossary — Standards & InteroperabilityOctober 24, 2026

What is a DRG? Diagnosis-Related Group Explained

A DRG (Diagnosis-Related Group) classifies a hospital inpatient stay into a payment category based on diagnoses, procedures, age and complications — so similar cases are reimbursed at a similar, bundled rate.

DRG-based payment encourages efficiency and is being adopted by Gulf and Egyptian payers (including Saudi NPHIES and Egypt's Universal Health Insurance) to standardise inpatient reimbursement.

SBS configures DRG grouping and reporting within the HIS/RCM, with accurate coding capture so cases are grouped and reimbursed correctly.

Frequently asked questions

What is a DRG?

A DRG (Diagnosis-Related Group) classifies an inpatient stay into a bundled payment category based on diagnoses, procedures, age and complications.

How does DRG pricing work?

Similar cases are grouped and reimbursed at a standard bundled rate, encouraging efficiency rather than fee-for-service.

Is DRG used in the Gulf and Egypt?

Yes — DRG-based reimbursement is being adopted by payers including Saudi NPHIES and Egypt's Universal Health Insurance.

How does SBS support DRG?

SBS configures DRG grouping and reporting in the HIS/RCM with accurate coding capture for correct reimbursement.

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