What does the calculation unit "RUG" refer to in the context of skilled nursing facilities?

The term "RUG" stands for Resource Utilization Group, which is a classification system used in skilled nursing facilities to determine the level of care and reimbursement rates provided to residents based on their needs. Each RUG category reflects the intensity of services required by patients, such as the amount of therapy they receive or their level of care complexity. This system is essential for allocating healthcare resources effectively and ensuring that skilled nursing facilities receive appropriate reimbursement from Medicare and Medicaid programs based on the care they provide. Understanding RUGs is crucial for facility administrators and healthcare professionals in managing care plans and financial operations within these facilities.