Specialty billing / Skilled Nursing Facility

Skilled Nursing Facility Billing Services

Skilled nursing billing depends on eligibility conditions established before the resident arrives and on assessments completed after admission. A qualifying hospital stay, available benefit days, an accurate MDS, and consolidated billing rules that make the facility responsible for services it did not order all shape whether a stay is paid correctly.

Analyst reviewing claim data across multiple screens

0

Years in revenue cycle

48h

Claim filing window

30d

Target days to payment

HIPAA

Compliant by design

Where it breaks

What makes skilled nursing facility billing difficult

Qualifying hospital stay verification

Medicare Part A skilled coverage generally requires a preceding qualifying inpatient hospital stay. Residents admitted after time spent in observation status do not qualify, and facilities frequently learn this only after providing weeks of skilled care.

Benefit day exhaustion

Coverage runs for a limited number of days per benefit period with a coinsurance tier partway through. Without day-by-day tracking and timely notice to the resident, facilities deliver care that has already moved beyond the covered period.

Consolidated billing responsibility

Most services furnished to a Part A resident must be billed by the facility, including many therapies and supplies provided by outside vendors. Outside claims are denied, the vendor bills the facility, and the cost was never captured in the rate.

Assessment accuracy and payment

Payment classification is driven by the MDS. Late assessments, missed assessment windows, or documentation that does not support the clinical categories coded change the payment group and create liability under review.

Frequently billed

Codes we handle daily

99306 Initial nursing facility care, high complexity
99307 Subsequent nursing facility care, straightforward
99309 Subsequent nursing facility care, moderate complexity
99310 Subsequent nursing facility care, high complexity
99315 Nursing facility discharge day management, 30 minutes or less

Representative codes only. Actual coding follows current CPT/HCPCS guidance and payer policy.

Denials we prevent

Why skilled nursing facility claims get denied

  • Part A stay denied because the resident had no qualifying inpatient hospital stay before admission.
  • Days billed after the benefit period was exhausted or after skilled level of care ended.
  • Outside vendor claim denied because the service falls under facility consolidated billing.
  • Assessment does not support the payment classification submitted for the stay.
What we do
  • Qualifying hospital stay verification
  • Benefit period and day tracking
  • Consolidated billing determination for vendor services
  • MDS and payment classification review
  • Medicare, Medicaid and managed care claim management
  • Beneficiary notice and liability documentation

FAQ

Skilled Nursing Facility billing questions

What counts as a qualifying hospital stay?

Medicare Part A skilled nursing coverage generally requires a medically necessary inpatient hospital stay of at least three consecutive days, not counting the discharge day. Time spent under observation status does not count toward that requirement, even when the patient occupied a hospital bed. Confirm inpatient status, not just the length of the hospitalization.

How do skilled nursing benefit periods work?

A benefit period begins with an inpatient admission and ends after the beneficiary has been out of a hospital or skilled facility for 60 consecutive days. Coverage within the period is limited, with full coverage for an initial span and daily coinsurance after. Tracking day counts per resident prevents billing beyond the covered period.

What is consolidated billing and why does it cause problems?

Under Part A, the facility receives a bundled payment and must bill for most services furnished to the resident, including many provided by outside suppliers and therapists. Those vendors cannot bill Medicare directly. When a vendor's claim is denied, the cost returns to the facility, so vendor arrangements must be identified at admission.

How does the MDS affect payment?

The assessment classifies the resident into a payment group based on clinical characteristics and care needs. Assessments completed late, outside the required window, or with categories the clinical record does not support change the payment and create exposure on review. Assessment accuracy is a revenue function, not only a clinical one.

Do you work with Medicare Advantage plans for skilled nursing?

Yes, and their rules differ substantially from traditional Medicare. Many require authorization before admission, apply their own level of care criteria, and conduct concurrent review with the ability to end coverage mid-stay. We manage those authorizations and reviews so coverage decisions are known before the days are delivered.

Next step

Billing built for skilled nursing facility.

Send us your specialty, claim volume and current billing setup. We will come back with a proposal you can act on.