The findings of a research study conducted at Caucasus University, entitled “Introduction of the Diagnosis-Related Groups (DRG) Financing Method in Georgia and Its Impact on the Efficiency of Medical Services,” have been published in the international peer-reviewed journal Economics and Business.
Authors
- Tengiz Verulava – Professor, Caucasus University School of Business; Director, Health Policy Center
- Revaz Jorbenadze – Director, Acad. G. Chaphidze Emergency Cardiology Center; Professor, Caucasus University
- Giorgi Kurtanidze – Student, Caucasus University School of Medicine
Verulava, T., Jorbenadze, R., & Kurtanidze, G. (2025). Introduction of the Diagnosis-Related Groups (DRG) Financing Method in Georgia and Its Impact on the Efficiency of Medical Services. Economics and Business, 21(3), 101–122.
The journal Economics and Business is indexed in the international academic databases EBSCO and ERIH PLUS.
Research Overview
In 2022, Georgia introduced a prospective hospital financing system based on Diagnosis-Related Groups (DRGs), with the objective of enhancing efficiency and transparency within the healthcare system. This study evaluates the impact of DRG-based hospital financing on the effectiveness of medical services provided to patients with myocardial infarction.
The research analyzes data from three major hospitals covering the period 2021–2024. The results demonstrate that the introduction of the DRG system led to:
- reduced length of hospital stays,
- lower readmission rates, and
- decreased mortality rates.
Despite an increase in the pricing of diagnostic categories, patients’ out-of-pocket expenditures declined, indicating improved financial accessibility to healthcare services.
