Minimum Data Set (MDS) System

4146 - Minimum Data Set (MDS) System (Rev. 1, 05-21-04) The MDS system in each State is the cornerstone for a comprehensive, Quality Improvement and Evaluation System (QIES) that will not only fulfill MDS administration requirements, but also support other assessment-based programs (such as the Outcome and Assessment Information Set (OASIS) for home health agencies (HHAs), quality and performance indicators; and new, integrated survey and certification data systems. The State must use the MDS system for editing, storing, and processing MDS data to support CMS’ MDS operating requirements within the State and to transmit the required MDS data to the CMS MDS repository. The State may not add additional software applications to the MDS system without a specific directive from CMS. The automated MDS system is a critical component of State agency and CMS operations, and provides the means for transmission of assessment data to CMS for validating payments under the Medicare SNF Prospective Payment System (SNF PPS) for nursing homes. The initial phase of the MDS system implementation involved a CMS-funded installation of standardized computer hardware and data management software at each State Agency to allow electronic transfer of MDS data elements from all Medicare and Medicaid nursing homes to the State. The data management software: 1. Validates the basic accuracy of the data and rejects submission files (batches) with Fatal File Errors, such as a missing or invalid Facility ID, incorrect record length, or missing headers or trailers; 2. Validates individual assessment records and rejects those records with Fatal Record Errors, 3. Stores and reports Non-Fatal Errors on records that are accepted by the database; and 4. Builds a database of MDS information for all residents in each nursing home in the State. The MDS system implemented electronic transmission of MDS data by all Medicare and Medicaid nursing homes beginning with the regulation’s effective date of June 22, 1998. This provides for enhanced analytical capabilities at the State agencies; electronic transmission from the State databases to a national repository; integration with performance indicators for quality oversight and survey planning by the State Agency; use of MDS data as a basis for prospective payment of nursing homes; research directed at improving quality of care; feedback to providers; and dissemination of information to purchasers, beneficiaries, and others. The following procedures describe MDS system operations.