101 CMR 206.04
Nursing Standard Payments and Operating Cost Standard Payments
(1) Nursing Standard Payments.
(a) Nursing Standard Payment Calculation. Beginning October 1, 2025, nursing facilities will
receive the following nursing standard payments:
PDPM Nursing HIPPS
Code (Acuity Level)
PDPM Nursing Case
Mix Index (2024)
Nursing Standard
Payment
A (ES3)
B (ES2)
C (ES1)
PDPM Nursing HIPPS
Code (Acuity Level)
PDPM Nursing Case
Mix Index (2024)
Nursing Standard
Payment
D (HDE2)
E (HDE1)
F (HBC2)
G (HBC1)
H (LDE2)
I (LDE1)
J (LBC2)
K (LBC1)
L (CDE2)
M (CDE1)
N (CBC2)
O (CA2)
P (CBC1)
Q (CA1)
R (BAB2)
S (BAB1)
T (PDE2)
U (PDE1)
V (PBC2)
W (PA2)
X (PBC1)
Y (PA1)
(b) Nursing Standard Payment Adjustment. Beginning October 1, 2025, eligible nursing
facilities will receive adjustments to their standard nursing payments at 101 CMR 206.04(1)(a),
which will be calculated and determined as follows.
1. Calculate each facility’s average nursing standard payment rate in effect as of
September 30, 2025, weighted by the facility’s average PDPM nursing case mix during the
period of January 1, 2024, through December 31, 2024. For each facility, add this value
to the facility’s average Nursing Standard Payment Adjustment in effect as of September
30, 2025, weighted by the facility’s average PDPM nursing case mix during the period of
January 1, 2024, through December 31, 2024.
2. Calculate each facility’s average proposed nursing standard payment rate, beginning
October 1, 2025, using the nursing rates as defined in 101 CMR 206.04(1)(a) and weighted
by the facility’s average PDPM nursing case mix during the period of January 1, 2024,
through December 31, 2024.
3. To determine a facility’s eligibility for the Nursing Standard Payment Adjustment
a. First, determine whether the facility is a pediatric facility. If the facility is a pediatric
facility, then
i. Determine whether the value calculated in 101 CMR 206.04(1)(b)2. is less than
the value calculated in 101 CMR 206.04(1)(b)1.
ii. If the value calculated in 101 CMR 206.04(1)(b)2. is less than the value
calculated in 101 CMR 206.04(1)(b)1., then calculate an “average nursing rate
adjustment” such that the sum of this adjustment and the value calculated in 101
CMR 206.04(1)(b)2. will be equal to the value calculated in 101 CMR
206.04(1)(b)1.
iii. Divide the “average nursing rate adjustment” by the value calculated in 101
CMR 206.04(1)(b)2. The resulting percentage, rounded to the nearest hundredth of
a percent, will be the Nursing Standard Payment Adjustment.
b. If the facility is not a pediatric facility, then determine whether the facility is a High
Medicaid facility. For the purposes of the Nursing Standard Payment Adjustment, a
High Medicaid facility is defined as a facility for which Massachusetts Medicaid days
are at least 75.00% of its total resident days, as reported on quarterly User Fee
Assessment Forms for the period April 1, 2024, through March 31, 2025. If the facility
is a High Medicaid facility, then
i. Determine whether the value calculated in 101 CMR 206.04(1)(b)2. is less than
the value calculated in 101 CMR 206.04(1)(b)1.
ii. If the value calculated in 101 CMR 206.04(1)(b)2. is less than the value
calculated in 101 CMR 206.04(1)(b)1., then calculate an “average nursing rate
adjustment” such that the sum of this adjustment and the value calculated in 101
CMR 206.04(1)(b)2. will be equal to the value calculated in 101 CMR
206.04(1)(b)1.
iii. Divide the “average nursing rate adjustment” by the value calculated in 101
CMR 206.04(1)(b)2. The resulting percentage, rounded to the nearest hundredth of
a percent, will be the Nursing Standard Payment Adjustment.
4. For eligible facilities, the Nursing Standard Payment Adjustment will be applied as
an upward adjustment to the nursing standard payment rate at each PDPM nursing case
mix category.
(2) Operating Cost Standard Payments. Beginning October 1, 2025, nursing facilities will
receive operating cost standard payments of $127.26.