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MS-DRG 516 · MDC 08 · Surgical

MS-DRG 516: Other Musculoskeletal System and Connective Tissue O.R. Procedures with CC

Reviewed by QuickIntell RCM Editorial Team · Last reviewed

Data effective
Data currency: IPPS Table 5 FY2027 final rule (effective October 1, 2026); Definitions Manual v44 (effective October 1, 2026). Next CMS release: April 1, 2027 (v44.1 mid-year update), then the FY2028 final rule in August 2027.

Key facts for DRG 516

FY2027 relative weight
2.1180
Higher than 65% of all MS-DRGs
Change vs FY2026
+1.9%
FY2026 weight 2.0780
Geometric mean LOS
4.0 days
Arithmetic mean 5.0 days
MDC
08
Diseases and Disorders of the Musculoskeletal System and Connective Tissue
Severity level
with CC (complication or comorbidity)
Transfer policy
Post-acute transfer DRG
Special-pay DRG

TL;DR

MS-DRG 516 is a surgical group in MDC 08 (Diseases and Disorders of the Musculoskeletal System and Connective Tissue) at the middle severity level of its family. CMS assigns it a FY2027 relative weight of 2.1180 with a geometric mean length of stay of 4.0 days and an arithmetic mean of 5.0. Its weight moved up 1.9% from FY2026 (2.0780). That weight is higher than 65% of all surgical and medical MS-DRGs. Its CC/MCC family (DRG 515, DRG 517) spans weights 1.5730 to 3.1890. The v44 Definitions Manual assigns it through 4626 operating room procedures codes.

What changed from FY2026 to FY2027

CMS recalibrates every MS-DRG weight annually from the prior year's MedPAR claims. For DRG 516 the FY2027 relative weight is 2.1180 against 2.0780 in FY2026, a rise of 1.92%.

FY2026 versus FY2027 payment factors for MS-DRG 516
MetricFY2026FY2027Change
Relative weight2.07802.1180+0.0400
Geometric mean LOS (days)4.04.0+0.0
Arithmetic mean LOS (days)5.15.0-0.1
Weights shown are the FY2027 final values after the 10% cap on year-over-year reductions where applicable.

CC and MCC family

DRG 516 shares its base definition with 2 other MS-DRGs split by severity. The family's weights span 1.5730 to 3.1890, a 2.03× spread, which is the payment effect of documenting qualifying complications and comorbidities.

MS-DRGs in the same base group as DRG 516
DRGTitleFY2027 weightGMLOS
515Other Musculoskeletal System and Connective Tissue O.R. Procedures with MCC3.18906.7
516Other Musculoskeletal System and Connective Tissue O.R. Procedures with CC2.11804.0
517Other Musculoskeletal System and Connective Tissue O.R. Procedures without CC/MCC1.57302.3

Grouper logic (v44 Definitions Manual)

Operating Room Procedures: 4626 ICD-10 codes drive assignment to this group; the first 12 are shown.

Operating Room Procedures codes assigned to DRG 516 (sample)
ICD-10 codeDescription
008F0ZZDivision of Olfactory Nerve, Open Approach
008F3ZZDivision of Olfactory Nerve, Percutaneous Approach
008F4ZZDivision of Olfactory Nerve, Percutaneous Endoscopic Approach
008G0ZZDivision of Optic Nerve, Open Approach
008G3ZZDivision of Optic Nerve, Percutaneous Approach
008G4ZZDivision of Optic Nerve, Percutaneous Endoscopic Approach
008H0ZZDivision of Oculomotor Nerve, Open Approach
008H3ZZDivision of Oculomotor Nerve, Percutaneous Approach
008H4ZZDivision of Oculomotor Nerve, Percutaneous Endoscopic Approach
008J0ZZDivision of Trochlear Nerve, Open Approach
008J3ZZDivision of Trochlear Nerve, Percutaneous Approach
008J4ZZDivision of Trochlear Nerve, Percutaneous Endoscopic Approach

Documentation and denial exposure

As a surgical DRG, assignment depends on a qualifying operating-room procedure being coded from the operative report; a missing or non-OR procedure code drops the stay into a medical DRG in MDC 08 with a lower weight. Because this family splits by severity, auditors target CC and MCC capture: each secondary diagnosis must be documented as present, monitored, evaluated or treated during the stay to survive a DRG-validation review. Typical inpatient denial codes for this group: CARC 16 (claim lacks information needed to group the stay), CARC 50 (the admission or procedure is judged not medically necessary), CARC 97 (a service is bundled into the DRG payment).

How QuickIntell uses DRG 516 data

QuickCode groups inpatient encounters against the current v44 logic, flags CC and MCC candidates that lack supporting documentation, and shows the weight difference across the family before the claim drops. QuickScribe captures the attending's language that supports severity, and QuickRCM works DRG-validation denials with the grouper evidence attached.

Frequently asked questions — DRG 516

What is MS-DRG 516?

MS-DRG 516 is "Other Musculoskeletal System and Connective Tissue O.R. Procedures with CC", a surgical Medicare Severity Diagnosis-Related Group in MDC 08, Diseases and Disorders of the Musculoskeletal System and Connective Tissue. Medicare pays inpatient stays grouped here at the hospital's base rate multiplied by the DRG relative weight.

What is the FY2027 relative weight for DRG 516?

The FY2027 relative weight is 2.1180 (IPPS final rule Table 5, effective October 1, 2026). In FY2026 it was 2.0780, a change of +1.9%.

What is the average length of stay for DRG 516?

CMS reports a geometric mean length of stay of 4.0 days and an arithmetic mean of 5.0 days for FY2027. The geometric mean is used for transfer-payment calculations.

Which DRGs are in the same CC/MCC family as 516?

DRG 515 (Other Musculoskeletal System and Connective Tissue O.R. Procedures with MCC, weight 3.1890); DRG 517 (Other Musculoskeletal System and Connective Tissue O.R. Procedures without CC/MCC, weight 1.5730). The family's weights range from 1.5730 to 3.1890, so documented complications and comorbidities change payment materially.

What documentation supports the severity level of DRG 516?

DRG 516 is reached when the stay carries a secondary diagnosis from the CMS Complication or Comorbidity list but none from the MCC list. Common CC captures include chronic kidney disease stage 3 and above, uncontrolled diabetes with manifestations, malnutrition of specified severity and heart failure of a stated type. Each must be documented by the treating clinician and show clinical relevance in the record; a condition listed only in the problem list without assessment is the most frequent reason a CC is removed on audit and the stay drops to the base DRG.

Which codes group to DRG 516?

The v44 Definitions Manual lists 4626 operating room procedures codes for this group. Examples from the operating room procedures list: 008F0ZZ (Division of Olfactory Nerve, Open Approach); 008F3ZZ (Division of Olfactory Nerve, Percutaneous Approach); 008F4ZZ (Division of Olfactory Nerve, Percutaneous Endoscopic Approach); 008G0ZZ (Division of Optic Nerve, Open Approach).

Is DRG 516 a post-acute transfer DRG?

Yes. CMS flags DRG 516 under the post-acute care transfer policy, so a discharge to a qualifying post-acute setting before the geometric mean length of stay is paid a per-diem amount rather than the full DRG payment. It is also a special-pay DRG.

Sources

Every figure on this page is taken from the CMS publications below, as released by the Centers for Medicare & Medicaid Services. Projection built 2026-10-01. Verify against the primary file before billing or contracting decisions.

Disclaimer

This page is an operational reference compiled from the CMS IPPS FY2027 final rule (Table 5) and the v44 ICD-10 MS-DRG Definitions Manual. Relative weights are national factors; actual payment depends on each hospital's wage-adjusted base rate, add-ons, outliers and transfer adjustments. Nothing here is legal, clinical or billing advice; verify grouping against your encoder and the published CMS files.