Sustainable and strategic health financing is crucial to Universal Health Care (UHC). From a fee-for-service (FFS) model to the All-Case Rates (ACR) system, PhilHealth has steadily shifted from a reactionary, retrospective PPM to one that promotes greater hospital efficiency. PhilHealth’s yearly milestones indicate the crafting of DRG version 0 (v0) for the year 2022. This project serves as a direct input to this PhilHealth UHC milestone as well as the next iteration of Diagnosis-Related Group (DRGs) version 1 (v1), which will be used in actual billing and payment. Specifically, this project will develop the Philippine DRG rate-setting method (i.e., adopt TDRG v5), grouper, documentation, and monitoring framework to assess the impact of DRGs on hospital care (e.g., quality, efficiency) in the Philippines.