Nursing facilities receive a per diem (a single comprehensive payment per day per resident). The per diem is specific to each facility and is the sum of three separately calculated components – nursing, support and capital.
Support and capital rates are set based on information provided by facilities through cost reports submitted to the Department. The nursing component is a function of the health care needs of the facility’s residents, as measured by the Minimum Data Set (MDS) completed by each facility. The MDS-based reimbursement methodology goes into effect January 1, 2007.