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BACKGROUND AND PROJECT AIM The American British Cowdray Medical Center is a private healthcare institution in Mexico City. One of the many tools that we use and help us to achieve a high standard of quality and recognition worldwide is the clinical coding and Diagnosis Related Groups (DRG). To help the readers to improve the process of clinical coding, we will share the challenges, changes and different applications of the generation of DRG in the private healthcare institution. METHODS AND RESULTS A retrospective, descriptive study to demonstrate the changes on the process of coding and measure the outcome of clinical coding, precision of data and better quality in the generations of DRGs. Initially, less than 2 diagnoses and 1 procedure were coded per discharge, using partial medical records. By the second half of 2007, a different coding procedure was implemented, and the complete medical records started being used; also, comorbid conditions were included in coding. Nowadays, the average number of coded diagnoses is 5.4 and the average number of coded procedures is 4.2, with a coding error rate of 0.68% and a DRG outliers' rate of 0.45%. DISCUSSION AND CONCLUSIONS While many countries use DRG for reimbursement, we exploit the clinical data registration and the DRGs for the economic and organizational. Through more efficient and accurate coding, DRGs are useful within the institution to generate indicators on resources, cost, length of stay and goals for each service. Having better quality clinical data has allowed for improved service line management, which has translated into patient-oriented services. Prospective studies are necessary to keep evaluating in a objective way the utilities of the DRG in healthcare private institutions.