One of the major criticisms of the CMS Diagnosis Related Groups (DRG) reimbursement methodology was that it did not include an adequate Severity of Illness (S/I) adjustment. In response to these criticisms, CMS revised the old DRG system in FY 2008 to include a Severity of Illness adjustment (MS-DRG).

In a 1-2 page paper, analyze, compare and contrast the old DRG system with the new MS-DRG system. Based on your analysis, identify and evaluate the overall benefits and/or disadvantages that the new MS-DRG severity adjusted system would be for a healthcare facility.