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MS-DRG 981 · MDC · Surgical

MS-DRG 981: Extensive O.R. Procedures Unrelated to Principal Diagnosis with MCC

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 981

FY2027 relative weight
4.7440
Higher than 90% of all MS-DRGs
Change vs FY2026
+1.1%
FY2026 weight 4.6920
Geometric mean LOS
8.4 days
Arithmetic mean 11.9 days
MDC
None
Not assigned to an MDC
Severity level
with MCC (major complication or comorbidity)
Transfer policy
Post-acute transfer DRG

TL;DR

MS-DRG 981 is a surgical group in MDC (Not assigned to an MDC) at the highest-severity level of its family. CMS assigns it a FY2027 relative weight of 4.7440 with a geometric mean length of stay of 8.4 days and an arithmetic mean of 11.9. Its weight moved up 1.1% from FY2026 (4.6920). That weight is higher than 90% of all surgical and medical MS-DRGs. Its CC/MCC family (DRG 982, DRG 983) spans weights 1.6140 to 4.7440.

What changed from FY2026 to FY2027

CMS recalibrates every MS-DRG weight annually from the prior year's MedPAR claims. For DRG 981 the FY2027 relative weight is 4.7440 against 4.6920 in FY2026, a rise of 1.11%.

FY2026 versus FY2027 payment factors for MS-DRG 981
MetricFY2026FY2027Change
Relative weight4.69204.7440+0.0520
Geometric mean LOS (days)8.48.4+0.0
Arithmetic mean LOS (days)11.811.9+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 981 shares its base definition with 2 other MS-DRGs split by severity. The family's weights span 1.6140 to 4.7440, a 2.94× spread, which is the payment effect of documenting qualifying complications and comorbidities.

MS-DRGs in the same base group as DRG 981
DRGTitleFY2027 weightGMLOS
981Extensive O.R. Procedures Unrelated to Principal Diagnosis with MCC4.74408.4
982Extensive O.R. Procedures Unrelated to Principal Diagnosis with CC2.42503.9
983Extensive O.R. Procedures Unrelated to Principal Diagnosis without CC/MCC1.61401.9

Grouper logic (v44 Definitions Manual)

The Definitions Manual assigns DRG 981 through the MDC principal-diagnosis table and the operating-room procedure hierarchy rather than a DRG-specific code list. See the manual chapter for MDC .

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 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 981 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 981

What is MS-DRG 981?

MS-DRG 981 is "Extensive O.R. Procedures Unrelated to Principal Diagnosis with MCC", a surgical Medicare Severity Diagnosis-Related Group in MDC , Not assigned to an MDC. 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 981?

The FY2027 relative weight is 4.7440 (IPPS final rule Table 5, effective October 1, 2026). In FY2026 it was 4.6920, a change of +1.1%.

What is the average length of stay for DRG 981?

CMS reports a geometric mean length of stay of 8.4 days and an arithmetic mean of 11.9 days for FY2027. The geometric mean is used for transfer-payment calculations.

Which DRGs are in the same CC/MCC family as 981?

DRG 982 (Extensive O.R. Procedures Unrelated to Principal Diagnosis with CC, weight 2.4250); DRG 983 (Extensive O.R. Procedures Unrelated to Principal Diagnosis without CC/MCC, weight 1.6140). The family's weights range from 1.6140 to 4.7440, so documented complications and comorbidities change payment materially.

What documentation supports the severity level of DRG 981?

DRG 981 requires at least one secondary diagnosis on the CMS Major Complication or Comorbidity list, documented as present and clinically addressed during the stay (monitored, evaluated, treated or extending the stay). Conditions such as acute respiratory failure, severe sepsis or acute kidney injury with specified cause qualify only when the attending's note states the diagnosis itself, not just the lab values. Recovery auditors downgrade this group to the CC or base level when the MCC rests on an unconfirmed query or a resolved historical condition, so the query response and the discharge summary must agree.

Is DRG 981 a post-acute transfer DRG?

Yes. CMS flags DRG 981 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.

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.