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Skilled Nursing Facility (SNF)

Definition:  A licensed institution, as defined by Medicare, which is primarily engaged in the provision of skilled nursing care.  SNFs are usually Diagnosis Related Groups (DRG) or Prospective Payment System (PPS) exempt and are located within hospitals, but sometimes are located in rehab facilities or nursing homes.

SNFs provide a level of care that requires the daily involvement of skilled nursing or rehabilitation staff and that, as a practical matter, can't be provided on an outpatient basis.

Examples of skilled nursing facility care include the provision of such services as intravenous injections and physical therapy.

The need for custodial care (for example, assistance with activities of daily living, like bathing and dressing) may not, in itself, qualify for reimbursement in a skilled nursing facility by Medicare or other health plans.