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How does CMS rate nursing homes? A Guide to the Five-Star System

3 min read

The Centers for Medicare & Medicaid Services (CMS) launched its Five-Star Quality Rating System in 2008 to help consumers compare nursing homes more easily. The rating, from one to five stars, provides a snapshot of a facility's overall quality based on three critical areas: health inspections, staffing, and quality measures. A higher rating indicates better performance, but CMS advises using this information alongside other research, including facility visits.

Quick Summary

The CMS Five-Star Quality Rating System evaluates nursing homes on health inspections, staffing, and resident quality measures to produce an overall star rating. Learn how CMS calculates individual domain ratings and uses specific criteria to determine a facility's final quality score on its Care Compare website.

Key Points

  • Overall Rating: CMS assigns nursing homes a star rating (1-5) based on a combination of health inspections, staffing, and quality measures.

  • Three Domains: The overall star rating is a composite of three separate component ratings for health inspections, staffing, and quality measures.

  • Health Inspections: This domain is based on points assigned for deficiencies found during state health and complaint surveys over the past three years.

  • Staffing Levels: The staffing rating is calculated from self-reported data on registered nurse (RN) and total nursing hours per resident per day, adjusted for resident acuity.

  • Quality Measures: This component uses clinical data and resident outcomes from the Minimum Data Set (MDS) and Medicare claims to measure various quality indicators.

  • Overall Score Logic: A facility's overall rating starts with its health inspection score and can be adjusted up or down based on its staffing and quality measures ratings.

  • Consumer Resource: The official CMS Care Compare website is the public platform where these ratings are displayed and facilities can be compared.

In This Article

The Centers for Medicare & Medicaid Services (CMS) uses its Five-Star Quality Rating System to assess and rate nursing homes, making this information publicly available to assist consumers in choosing facilities. The overall rating is a cumulative score based on performance in three primary categories: health inspections, staffing, and quality measures. These ratings are displayed on the Medicare Care Compare website.

The Three Key Domains of the CMS Rating System

The overall star rating is derived from a weighted combination of separate star ratings for each of the three key domains.

1. Health Inspections Rating

This is typically the most significant factor, accounting for 60–70% of the overall score. The rating is determined by findings from state surveys, including annual inspections, complaint investigations, and infection control reviews. Deficiencies found during these inspections are assigned points based on their scope and severity, with more recent findings having a greater impact. Facilities are rated relative to others in their state to account for variations in state survey practices.

2. Staffing Rating

Contributing 15–20% to the overall score, this rating assesses the amount of direct care staff time residents receive. Data is submitted by facilities and adjusted for resident acuity. Key metrics include RN and total nurse staffing hours per resident per day, as well as staff turnover rates. Failure to submit data or consistent lack of an on-site RN can result in a one-star staffing rating.

3. Quality Measures (QM) Rating

Making up 15–25% of the total score, the QM rating focuses on resident health outcomes using data from the Minimum Data Set (MDS) and Medicare claims. Measures cover both short- and long-stay residents and include factors like pressure ulcers, weight loss, falls with injury, use of antipsychotic medications, and vaccination rates. Performance is compared to national benchmarks, with facilities grouped into quintiles.

The Overall Rating Calculation

The overall rating calculation begins with the health inspection rating. Adjustments are then made based on the staffing and quality measures ratings. A significantly higher staffing rating (4 or 5 stars and greater than the health inspection rating) or a five-star QM rating can add a star to the overall score, while a one-star rating in either category can result in a deduction. If the health inspection rating is one star, the overall rating cannot increase by more than one star. Special Focus Facilities, identified for consistently poor care, are capped at a three-star overall rating.

Comparing Rating Components

Feature Health Inspections Staffing Quality Measures (QM)
Data Source State surveys (annual, complaint, infection control) Facility-reported Payroll-Based Journal (PBJ) data Facility-reported Minimum Data Set (MDS) and Medicare claims data
Rating Basis Number and severity of deficiencies; weighted by recentness. Case-mix adjusted hours per resident day and staff turnover rates. Resident health outcomes and clinical performance.
Comparison Group Ranked relative to facilities within the state. Compared to national averages and benchmarks. Ranked relative to national distribution.
Recent Weighting Heaviest on most recent survey results. Based on the previous three months for staffing levels. Uses data from the last four available quarters.
Maximum Rating Impact Starting point for overall rating. Can add or subtract one overall star. Can add or subtract one overall star.

Conclusion

The CMS Five-Star Quality Rating System provides a valuable framework for assessing nursing home quality by evaluating health inspections, staffing, and quality measures. This system offers a standardized way to compare facilities. However, CMS emphasizes that these ratings should be used as one part of a comprehensive evaluation process. Prospective residents and their families should also conduct facility visits, speak with staff and residents, and consult resources like the long-term care ombudsman program to make an informed decision. CMS continues to refine the system to promote ongoing quality improvement in nursing home care.

Learn more from official sources

For the most current information on individual nursing homes, visit the official Medicare Care Compare website.

Frequently Asked Questions

The CMS Five-Star Quality Rating System is a tool created by the Centers for Medicare & Medicaid Services to help consumers compare Medicare and/or Medicaid-certified nursing homes. It rates each facility from one to five stars based on performance in health inspections, staffing, and quality measures.

Health inspection ratings are based on information from a nursing home's last three years of comprehensive annual inspections and complaint investigations. Points are assigned for deficiencies found, with more recent surveys weighted more heavily. A nursing home's rating is then assigned based on its performance relative to other facilities in its state.

The staffing rating is based on RN and total nursing staff hours per resident per day, adjusted for the resident case-mix. It also incorporates staff and administrator turnover rates. Facilities submit this data electronically via the Payroll-Based Journal (PBJ) system.

Quality Measures are clinical and physical indicators that evaluate resident outcomes and care. They include metrics for both short-stay and long-stay residents, such as the rates of pressure ulcers, falls with injury, use of antipsychotic medications, and hospitalizations.

The overall star rating is calculated in a multi-step process that starts with the health inspection rating. It is then modified by the staffing and quality measures ratings. For example, a high staffing rating can boost the overall score, while a one-star rating in either staffing or quality measures can lower it.

You can find the CMS Five-Star Quality Ratings on the official Medicare Care Compare website at medicare.gov/care-compare. This platform allows consumers to search for and compare nursing homes in their area.

No, CMS advises that the star ratings should be used as a starting point, not the only factor. It is important to also visit facilities, talk with staff, and consider other factors like location and specialty care needs. Speaking with a long-term care ombudsman is also recommended.

References

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Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.