State Operations Manual (Pub. 100-07), Ch. 4 § 4146.2
Administration Requirements
4146.2 - Administration Requirements
(Rev. 1, 05-21-04)
The States are directly responsible for fulfilling requirements to operate the State MDS
system. However, the State may enter into an agreement with the SMA, another State
component, or a private contractor to perform day-to-day operations of the system.
The State must obtain RO approval prior to entering an agreement with another agency.
Criteria for approval are provided at Exhibit 259. Under any such arrangement, the State
must be guaranteed real-time, priority access to this system to fully support all MDS
functions specified in the MDS procedures and this manual. All CMS privacy and
confidentiality requirements must be met. Off-site operation of the MDS system will
require high capacity, fault-tolerant network connections to ensure reliable support for the
State’s daily operations that will be affected by this system. The State also must use the
MDS system for reporting MDS data to the CMS central repository.
To promote national consistency in MDS system operations and troubleshooting, each
State must designate one individual as the MDS automation project coordinator. This
person is CMS’ key contact within each State for managing MDS system issues. This
person must be familiar with the use of the RAI and the MDS automation and
transmission process. Technical knowledge of information systems is useful but far less
critical than an understanding of the RAI and MDS processes, good communications and
project management skills, and the ability to educate and work with providers and
vendors to ensure successful implementation of an automated process for all providers.
The State should designate additional staff, including a system administrator to manage
the technical aspects of running the MDS system, and support staff to assist in answering
routine user questions, assigning passwords, etc.
With respect to systems maintenance, the MDS system installed in each State is
comprised of commercial off-the-shelf hardware and software components that are
generally covered under typical umbrella service agreements that the State may already
have in place for maintenance of data processing equipment. Those MDS software
components that are developed and distributed by CMS will be maintained and upgraded
centrally by CMS. The State will not be responsible for these software upgrades.
To the extent that the State has developed customized external applications for using
information obtained from the MDS database (e.g., to support Medicaid payment), the
costs of developing and maintaining these additional software applications (and any
related hardware components) will not be funded through the survey and certification
budget.