Victoria - Public Hospitals Policy and Funding Guidelines 1997-1998
Section A: Policy

3. Inpatient Classification and Cost Weights


AN-DRG Version 3 was introduced on 1 July 1997 and will continue in 1997-98. The grouping software used is AN-DRG Version 3.1.

The Department engaged Health Solutions Pty Ltd to conduct the Victorian 1996 Cost Weights Study of 1995-96 inpatient activity. A review of all weights was undertaken and the proposed areas of change were considered both through the Cost Weights Study itself and through formal Departmental consultations.

A clinical consultation process about issues relating to the inpatient cost weights was carried out by the consultants to the Cost Weights Study and by the Casemix Clinical Sub-committee.

The process involved:

  • Consultation with all participants in last year's consultative process to seek advice on issues/areas of concern.
  • Presenting clinicians with the opportunity to raise issues during the on-site hospital visits.
  • Inviting clinicians to correspond or contact the consultants directly to raise issues relating to the cost weights.
  • Inviting interested clinicians to a forum on 20 March 1997 to discuss clinical issues relating to the cost weights.
  • After reviewing submissions from clinicians and hospitals relating to clinical issues impacting on the cost weights, a small number of DRGs were identified as exceptional. Almost universally these were found to be due to DRG classification issues requiring resolution through the Australian Casemix Clinical Committee. Examination of the impact of anomalies at the individual DRG level by the consultants to the Cost Weights Study found no hospital to be systematically disadvantaged.

    A number of changes were subsequently made as outlined in sections 3.1-3.7.


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