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IR-DRG in the UAE: what Dubai and Abu Dhabi require

The UAE reimburses inpatient care on IR-DRG — International Refined Diagnosis Related Groups, maintained by Solventum. Abu Dhabi’s Department of Health made it the accepted inpatient claiming method from 1 January 2013, and Dubai’s DHA mandated DRG submission on eClaimLink from 1 September 2020.

By NANO Health Suite Clinical & Coding Team · Last updated

On this page

  1. Why the UAE chose IR-DRG
  2. Abu Dhabi: the longer-running mandate
  3. Dubai: DRG on eClaimLink from September 2020
  4. What a provider needs in place
  5. Grouping before coding is finished
  6. If you also operate in Saudi Arabia

Why the UAE chose IR-DRG

Two reasons, and both are practical rather than ideological. The first is coding: IR-DRG is built to produce a consistent classification across different coding conventions, and it works with the ICD-10-CM and CPT coding the Emirates already ran. Adopting a family that required ICD-10-AM and ACHI would have meant re-training every coder in the country first.

The second is scope. Most DRG families classify admitted care only. IR-DRG groups ambulatory encounters as well — day-case interventions, emergency attendances and other acute outpatient activity — which matters a great deal in a market where a large share of activity never becomes an admission.

Abu Dhabi: the longer-running mandate

Abu Dhabi moved first. The Department of Health made IR-DRG the accepted method for inpatient claiming from 1 January 2013, which makes the Emirate one of the longest-running DRG reimbursement environments in the region and means most providers there have a decade of casemix history to reason from.

That maturity changes what a provider should expect from a system. The question in Abu Dhabi is rarely "how do we start grouping" and usually "why does our casemix index look like this, and where are we losing to documentation".

Dubai: DRG on eClaimLink from September 2020

The Dubai Health Authority mandated DRG submission for all public and private hospitals in the Emirate from 1 September 2020, with claims exchanged through eClaimLink. The authority presented it as a move to link price directly to the service delivered, to reduce misuse and waste, and to stop paying for additional services with no clinical need.

For a provider the practical consequences are the familiar ones, arriving at once: coding becomes revenue-critical, documentation gaps become financial, and denials can now attack the grouping rather than only the line items.

What a provider needs in place

  • Coders working in ICD-10-CM and CPT to the standard the payer audits against — the grouping is only as good as they are.
  • Clinical documentation that records what was treated, not only what was done. An untreated-looking comorbidity is an unpaid one.
  • A grouper whose version matches what the authority is measuring against, and a process for keeping it current as the classification is revised.
  • Visibility of the episode before the claim is settled, so a documentation gap can be closed while it is still possible to close it.
  • Reconciliation between what you grouped and what the payer grouped, because that difference is where recoverable revenue sits.

Grouping before coding is finished

The constraint most UAE providers actually hit is capacity: more episodes needing classification than there are coders to code them. Waiting for complete coding before the episode can be seen at all means the documentation gaps surface after the claim, which is the expensive order to discover them in.

NANO AIR-DRG exists for that position. It is NANO’s own automated International Refined grouper: it carries a procedural code set developed in-house alongside ICD and ACHI codes, treats ICD coding as an optional input rather than a precondition, and can output IR-DRG for claim submission. Scarce coding capacity then goes to the episodes where a human actually changes the answer.

If you also operate in Saudi Arabia

Then you are running two classifications, because Saudi Arabia groups on AR-DRG from ICD-10-AM and ACHI while the UAE groups on IR-DRG from ICD-10-CM and CPT. That is a requirement rather than a choice, and the cost of meeting it on two unrelated systems is two sets of rules to keep current, two audit surfaces, and no comparable view of casemix across the group.

Frequently asked questions

Which DRG system does the UAE use?

IR-DRG, in both emirates that mandate DRG claiming. Abu Dhabi’s Department of Health adopted it for inpatient claiming from 1 January 2013, and Dubai’s DHA mandated DRG submission on eClaimLink from 1 September 2020.

Who maintains IR-DRG?

Solventum, formerly part of 3M. The classification is proprietary and its use is governed by a licence agreement, which is why descriptions of it — including this page — describe the standard rather than reproducing its grouping logic, definitions or tables.

Does IR-DRG cover outpatient care?

Yes, and it is the main structural difference from MS-DRG and AR-DRG. IR-DRG was designed to group ambulatory encounters alongside inpatient ones, covering same-day interventions, emergency department attendances and other acute outpatient activity.

Which codes do we submit with?

ICD-10-CM for diagnoses and CPT for procedures is the coding Dubai runs, and it is one of the reasons IR-DRG was selected. The grouper is built to produce a consistent classification across coding systems, but the codes you submit are still the ones your authority specifies.

Can NANO produce IR-DRG output?

Yes. NANO AIR-DRG is NANO’s own grouper, developed in-house, and it can output IR-DRG classifications for claim submission. That is a statement about what NANO’s software produces; Solventum maintains the IR-DRG classification itself.

How does DRG change denials?

It moves the argument upstream. Under fee-for-service a payer questions individual line items; under DRG it can question the group the episode landed in, which is a challenge to the coded record rather than to a charge. Defending it means being able to show the documentation that supports the classification.

What is the difference between grouping early and grouping correctly?

Early grouping tells you what an episode looks like before the record is complete, so you can act while action is still possible. Correct grouping is what the claim is ultimately submitted on. They are complementary: most groups use an automated grouper to see the episode and a deterministic grouper to finalise it.

Do we need to change our EMR?

Generally no. Grouping consumes the coded episode rather than replacing the system that produced it, and integration is normally an interface into the existing record rather than a migration away from it.

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