In October 2007, Medicare introduced significant changes to the CMS DRG system to better recognize differences in severity of illness and resource consumption. CMS replaced the 538 CMS DRGs with a revised set of DRGs called the Medicare Severity DRGs (MS-DRGs). (This change corresponds with the move from Version 24 DRGs to Version 25 MS-DRGs.) The MS-DRG categories are significantly different from those used in the previous version of DRGs. There are 745 MS-DRGs assigned in Version 25.
If your hospital completes the 2007 JARH on a calendar year basis (January-December 2007), the DRGs referenced in the JARH instructions will need to be adjusted due to this change from DRGs to MS-DRGs. In several sections of the JARH, hospitals are instructed to “exclude normal newborns.” The DRG categories to be excluded will be affected by the switch to MS-DRGs that occurred in October 2007. To exclude normal newborns for January – September 2007, DRGs 390 or 391 will be excluded as specified on the form. However, for October-December 2007, MS-DRGs 794 or 795 should be used to identify normal newborns.
If your hospital has already submitted the 2007 JARH (based on the calendar year) and your information needs to be revised due to this change in DRG systems in October, it is not too late to make the revisions. Contact Lonnie Matthews at the Department of Health as soon as possible by email at Lonnie.Matthews@state.tn.us or by phone at (615) 741-5845.
Please pass this information on to the person(s) in your hospital who are responsible for completing the 2007 Joint Annual Report of Hospitals.