Case mix index (CMI) is the average diagnosis-related group weight for all of a hospital's Medicare volume. It can be used to adjust the average cost per patient (or day) for a given hospital relative to the adjusted average cost for other hospitals by dividing the average cost per patient (or day) by the hospital's calculated CMI. The adjusted average cost per patient would reflect the charges reported for the types of cases treated in that year. If a hospital has a CMI greater than 1.00, their adjusted cost per patient or per day will be lowered and conversely if a hospital has a CMI less than 1.00, their adjusted cost will be higher.
Each DRG has a specific measurement that is related to the amount of resources needed to treat that condition in a specific kind of patient. The different mix of all the DRGs in a hospital or hospital departments is called the Case mix index.
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