# Medicare Program; Optional Payment System for Low Medicare Volume Skilled Nursing Facilities
> **Centers for Medicare and Medicaid Services** · Final rule. · Published 1995-07-21 · Effective 1995-08-21 · 60 FR 37590
## Document
- **Document number:** 95-17980
- **Category:** medicare
- **Sub-agency:** Centers for Medicare and Medicaid Services
- **Federal Register citation:** 60 FR 37590
- **CFR reference:** 42 CFR 413
- **Publication date:** 1995-07-21
- **Effective date:** 1995-08-21
- **HHS docket:** BPD-409-F
## Abstract

This final rule allows skilled nursing facilities (SNFs) that provide fewer than 1,500 days of care to Medicare beneficiaries in a cost reporting period to have the option of receiving prospectively determined payment rates in the following cost reporting period. The prospectively determined payment rates are based on components of SNF costs such as routine operating costs, capital-related costs, and a return on equity for proprietary facilities for routine services furnished before October 1, 1993. This rule also specifies that the return on equity provision for proprietary SNFs is eliminated for services furnished on or after October 1, 1993.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/1995/07/21/95-17980/medicare-program-optional-payment-system-for-low-medicare-volume-skilled-nursing-facilities)
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