Quality Improvement Organization Manual (Pub. 100-10), Ch. 7 § 7300
Diagnosis Related Groups (DRG) Validation Re-reviews
7300 – Diagnosis Related Groups (DRG) Validation Re-reviews
(Rev. 18, Issued: 10-10-14, Effective: Upon Implementation of ICD-10,
Implementation: Upon Implementation of ICD-10)
You are responsible for conducting DRG validation re-reviews. The authority for
reviewing changes in diagnostic and procedural coding information is found in 42 CFR
478.10(c).
A. Applicability
Although there are no reconsideration or appeal rights available for changes resulting
from DRG validation, the same process used for making a reconsideration determination
is used for DRG re-reviews (See §7430). A provider or practitioner dissatisfied with
your change to the diagnostic or procedural coding information is entitled to a review of
that change if it caused an assignment of a different DRG and resulted in a lower
payment (See 42 CFR 478.15(a)(1)). A beneficiary or his/her representative dissatisfied
with your change of the diagnostic or procedural coding information is also entitled to a
review of that change if it caused an initial denial of a furnished service (See 42 CFR
478.15(a)(2)). Review each case in its entirety.
B. How to Request a Re-review
The party must file a written request within 60 calendar days after the date of receipt of
the notice of change to the diagnostic or procedural coding information. A party may
also file such a request after 60 days for good cause (See §7410.C).
C. Qualifications of a Reviewer
The individual who reviews changes in DRG procedural or diagnostic information must
be a physician who meets the requirements in §7420.A. The individual who reviews
changes in DRG coding must be qualified through training and experience with ICD
coding. The reviewer (physician or non-physician) cannot be the person who made the
initial determination (A Registered Records Administrator or Accredited Records
Technician must have responsibility for the overall DRG validation process).
D. Timing of Re-review
Complete your re-review and send a written notice to all parties within 30 working days
of receipt of the request for a re-review.
E. Notices to Parties
Notify all parties (in writing) of your re-review determination. Be specific in explaining
the reason(s) for the changes (See Exhibit 7-47) (Do not send this notice to the
beneficiary). Notices of re-review must contain the following elements:
• A brief statement concerning your duties and functions under the Act, including
your responsibility to perform DRG validation;
• A listing of the ICD diagnosis and procedure code(s) and narrative description as
submitted by the provider and as originally changed by you, along with the reason
for the changes;
• A brief statement explaining that the provider and practitioner were given an
opportunity to provide additional information;
• The rationale used in upholding or reversing the initial DRG determination,
including the code(s) you finally determined to be correct upon re-review;
• A statement that the re-review determination is final (i.e., no further appeals
apply); and
• The signature, including title, of the medical director or designated physician if
the change(s) involve DRG procedural or diagnostic information (i.e., medical
judgment). If the change(s) involve(s) DRG coding errors, the re-review notice
may be signed by the medical director, designated physician, Chief Executive
Officer, Accredited Record Technician, or Registered Record Administrator (See
§7115.C.15).