CPXP Practice Exam 2026 – Comprehensive Exam Prep

The introduction of Diagnostic Related Groups (DRGs) in 1983 marked a significant change in how hospitals were reimbursed for patient care under the Medicare program in the United States. Prior to the implementation of DRGs, hospitals were reimbursed based on a cost-plus strategy, which often led to inefficiencies and rising healthcare costs. The DRG system created a more standardized and predictable reimbursement process by categorizing hospital cases into groups that are clinically similar and are expected to use similar amounts of hospital resources.

This move was intended to control healthcare costs and incentivize hospitals to operate more efficiently, as they would receive a fixed payment for each patient based on the DRG assigned, regardless of the actual cost incurred. As a result, the introduction of DRGs played a pivotal role in shaping healthcare financing and delivery in the U.S.

The other years mentioned in the options are not associated with the introduction of DRGs, thus affirming that 1983 is indeed the landmark year for this important shift in healthcare policy.