A RUG, or resource utilization group, is used to classify patients in long-term care facilities based on the care the patient requires, according to the Texas Department of Aging and Disability Services. As of 2014, there are 34 RUG groups.
The American Society of Consultant Pharmacists advises that a patient's RUG level is calculated based on information found on the patient's Minimum Data Set, also know as an MDS. The RUG level then determines the per diem rate that the facility receives. The per deim rate is the amount of money provided to the facility to pay for the care of a patient covered under Medicare Part A.