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Abstract

Diagnosis Related Groups, a prospective payment plan, were pilot tested in New Jersey starting in 1980. Within three years, they became the cost containment mechanism governing the state’s hospital patient care. Many changes resulted from the impact of this financial mechanism; hospitals, doctors, health care providers and patients were all affected as well as Visiting Nurse Associations and Health Maintenance Organizations. Because Diagnosis Related Groups have been utilized longer in New Jersey than in any other state, ramifications and emerging trends can be identitied. These changes may be of interest to health occupations teachers to help them acclimate their programs to the Diagnosis Related Groups phenomenon and to prepare for future changes.

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