How does the department calculate diagnosis-related-group (DRG) relative weights?

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How does the department calculate diagnosis-related-group (DRG) relative weights?

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In calculating DRG relative weights, the department will: (1) Allocate costs for hospital services at a detailed revenue code level using medicare cost report data and medicare definitions for allowable costs. The department will allow costs for graduate medical education and charity care. Allowable costs for charity care shall not exceed a maximum of two percent of the facility’s total allowable costs. (2) Classify department hospital admissions data and hospital discharge data in the Washington state department of health’s comprehensive hospital abstract reporting system (CHARS), using an all-patient grouper. (3) Establish relative weights from department of labor and industries’ hospital admission data. If the department’s data is not sufficient to calculate stable relative weights, the department may use hospital discharge data in the Washington state department of health’s comprehensive hospital abstract reporting system (CHARS) or another appropriate data source. (4) Exclude the

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