CHA News Article

Medi-Cal APR-DRG Methodology Begins July 1

Following approval by the Centers for Medicare & Medicaid Services in May allowing the implementation of the All Patient Refined Diagnosis Related Group (APR-DRG) reimbursement methodology, hospitals will need to finalize their preparation for the July 1 start of the new payment system. The California Department of Health Care Services (DHCS) has updated its DRG web page at with current information and bulletins including:

  • APR-DRG Reimbursement Implementation Official Notification
  • Most Common Denials Anticipated Under DRGs
  • New Medi-Cal Provider Manual pages for DRG billing instructions

In addition, DHCS will continue its APR-DRG monthly training series through September. Any questions related to DRG reimbursement, as well as requests to be added or removed from the DRG listserve, can be sent directly to