Resource Utilization Group


From the CMS website: "Section 4432(a) of the Balanced Budget Act (BBA) of 1997 modified how payment is made for Medicare skilled nursing facility (SNF) services. Effective with cost reporting periods beginning on or after July 1, 1998, SNFs are no longer paid on a reasonable cost basis or through low volume prospectively determined rates, but rather on the basis of a prospective payment system (PPS)." "Per diem payments for each admission are case-mix adjusted using a resident classification system (Resource Utilization Groups, version IV (RUG-IV)) based on data from resident assessments (MDS 3.0) and relative weights developed from staff time data."