Stakeholder Feedback Requested – Adjusting the NF Per Bed FRV Cap
March 23, 2026
The Department has decided to adjust the Nursing Facility (NF) per bed Fair Rental Value (FRV) cap by indexing the maximum per bed limit from 7/1/2018 to 7/1/2025 using the RSMeans index. We are currently soliciting your feedback on this change.
In the attached analysis (RS Means Calculations Maryland 2018 to 2025.xlsx), the FRV limit has been indexed using several different methods:
- Column E: The FRV limit is indexed using the single year change in the index. The indexed FRV limit at 7/1/2025 is $164,737.
- Column H: The FRV limit is indexed using a 2-year moving average of the change in the index to smooth large changes occurring in a single year. This indexed FRV limit at 7/1/2025 is $167,437.
- Columns F and J: The indexed amounts are rounded to the nearest $5,000. This is a method to smooth smaller changes between years and attempt to prevent decreases in the FRV limit. The indexed FRV limit at 7/1/2025 is $165,000 for both methods.
Also attached is a revised 7/1/2025 rate file including an “FRV Modeling” tab. This model incorporates the indexed limits to evaluate their impact. You can select a new price per bed from the dropdown list in Cell C13 (ranging from $130,000 to $200,000) to see the updated amounts in Rows 14-20, the per diem change counts beginning in Cell G3, the chain impact beginning in Cell B25, and the individual facility impact beginning in Row 60.
Please review the attached model and send your feedback to jarrod.terry@maryland.gov within 30 days of this email or by close of business, April 22, 2026.