The use of casemix classifications to assist in the analysis of patien
t-based information is becoming more widespread and routine in the man
agement of the National Health Service (NHS), This paper details the p
rocess of modification of and the results of modifications to Healthca
re Resource Groups (HRGs), an in-patient classification tailor-made fo
r the English healthcare system. Clinical expertise and extensive stat
istical analysis of national data were combined to identify areas of H
RGs Version 2 where improvement could be made. The ensuing changes wer
e then reviewed by professional associations and the wider NHS before
being incorporated into grouping software. Extensive changes were made
to the classification, with significant gains in statistical performa
nce. Analysis shows that the revised groupings perform better on Engli
sh data than other available systems.