ARDRG

AR-DRG, or Australian Refined Diagnosis-Related Groups, is a patient classification system used in Australian hospitals to group similar clinical conditions that require comparable levels of hospital resources. It is an adaptation of the DRG family developed in the United States and refined for Australian coding standards, clinical practice, and financing rules. Hospitals code patients using ICD-10-AM diagnosis codes and ACHI procedure codes; AR-DRGs are then assigned based on the principal diagnosis, procedures performed, patient age and sex, discharge status, and the presence of complications or comorbidities.

Each AR-DRG represents a clinically coherent group expected to consume similar resources, and the resulting groupings underpin Activity Based Funding in the Australian health system. In addition to funding, AR-DRG data support clinical governance, planning, and epidemiological reporting. The system has evolved through multiple versions to align with coding refinements and changing clinical practice. In practice, the grouping can be refined using severity of illness or complication flags, depending on state or national rules.

The AR-DRG is maintained by national health agencies in Australia, notably the Australian Institute of Health and Welfare (AIHW) in collaboration with the Independent Hospital Pricing Authority (IHPA). Accurate coding and data quality are essential for reliable grouping, funding, and reporting. AR-DRG data are widely used for benchmarking, policy evaluation, and performance measurement across public and private hospitals.