The division of treated cases into groups according to their diagnosis, determined using the international classification of diseases.
The purpose of grouping is to assist in the comparison of costs or in calculating the price to be charged for a quantity of cases conforming to a particular pattern of groupings.
Cases grouped by diagnosis tend to require similar types and volumes of services and thus incur similar costs. It is possible to set budgets for health services by using diagnosis-related groups for analysis of expected expenditure.

Adapted from World Health Organization. Terminology. A glossary of technical terms on the economics and finance of health services. Internet. Accessed December 18, 2015.