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Software companies program their products to calculate the
RUGS based on the data specifications laid out by CMS. The Federal Medicare
system uses version 5.12, 44 Grouper, index maximizing. So each RUG category has
a case mix index value attached to it. In an index maximizing system, the
program will look and see which RUG categories a resident falls in, then assign
the category with the highest case mix index. So if (hypothetically) a
resident falls into both a rehab and extensive services category, the system
will assign whichever category has the highest index, not the highest rate.
So for example : let's say RHC has a case mix index of 39.0,
and a rate of 365.62, and SE3 has a case mix index of 36.0 and a rate of
383.16. If a resident meets the criteria for both of these categories based on
MDS items entered, a system that is index maximizing as specified for Medicare
will look at both categories and pick the one with the higher case mix index. So
in this instance, RHC would be chosen because the index value 39.0 is higher
than 36.0. So the rate of reimbursement would be at 365.62.
It is not an arbitrary choice on the part of a correctly
programmed software system. This is what is required. Below is a link to the
manual RUG calculator tool provided by CMS. It can be useful if you are ever
curious as to the logic of the RUG grouping provided by your software or
otherwise.
Jenny Boring, R.N., B.A.
Director, AANAC Board
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