POS 31 in Medical Billing SNF Claims Made Simple

Introduction to POS 31 in Medical Billing

When Dr. Ahmed transitioned one of his elderly patients to a skilled nursing facility (SNF) after surgery, he expected billing to be straightforward. But soon, his team began facing denials. The culprit? Incorrect POS (Place of Service) coding.

This is where POS 31 in medical billing becomes critical. Place of Service codes are not just numbers they determine whether claims are accepted or denied. For doctors, a medical billing company in Florida, and billing teams working with SNFs, understanding POS 31 can mean the difference between smooth reimbursement and frustrating claim rejections.

Learn more about POS codes in medical billing here.

Why POS Codes Matter in Claims

Think of POS codes as the GPS for payers they tell insurers where services were provided. Whether it’s the office (POS 11), inpatient hospital (POS 21), outpatient hospital (POS 22), or emergency room (POS 23), using the correct code ensures accurate payment.

For skilled nursing facilities (SNFs), the correct code is POS 31. Without it, providers risk underpayments, denials, or compliance red flags.

👉 For a refresher on outpatient billing, see POS 22 in medical billing.

What POS 31 Means for Skilled Nursing Facilities

According to CMS definition, POS 31 = Skilled Nursing Facility (SNF). This code applies when a patient receives nursing or rehabilitative care that requires skilled medical supervision but doesn’t qualify as full inpatient hospital care.

Real-world scenario: Mrs. Lopez, recovering from a stroke, required rehab services in an SNF. Her physician’s billing team used POS 21 (inpatient hospital) instead of POS 31, leading to claim denials and delayed payments.

👉 Related read: POS 21 in medical billing explained.

Understanding SNF Claims

SNF claims differ from inpatient hospital claims because they blend medical, rehabilitation, and custodial care. While inpatient hospitals (POS 21) focus on acute care, SNFs (POS 31) provide ongoing recovery support under Medicare Part A or B.

Doctors must use POS 31 when billing for:

Rehabilitation therapy (PT, OT, Speech)
Post-surgical recovery care
Ongoing nursing supervision

This distinction ensures proper reimbursement and compliance.

When to Use POS 31

You should use POS 31 in the following cases:

Patients discharged from the hospital but needing skilled care
Ongoing medical monitoring after surgery
Long-term therapy or rehab services under SNF supervision

Misusing POS codes here such as billing under POS 22 (outpatient) can result in Medicare rejections.

For example, one billing team I worked with submitted over 50 claims under outpatient hospital POS 22 for SNF services. Almost all were denied, costing the practice over $10,000 before corrections were made.

Difference Between SNF Claims and Inpatient Claims

Code	Setting	Example
POS 21	Inpatient Hospital	Patient admitted for acute pneumonia
POS 22	Outpatient Hospital	Same-day surgery, discharged same evening
POS 23	ER Hospital	Emergency visit for chest pain
POS 31	Skilled Nursing Facility	Stroke recovery with rehab therapy

This table makes it clear: POS 31 is unique to SNFs.

👉 For ER-specific coding, see POS 23 in medical billing.

Common POS 31 Billing Mistakes

Even experienced billing teams struggle with SNF claims. Common errors include:

Incorrect code usage – Using POS 21 or 22 instead of 31.
Documentation errors – Missing notes on why SNF care was required.
Misidentifying patient status – Confusing short-term SNF rehab with outpatient follow-up.

Such mistakes lead to claim denials, delayed payments, and compliance issues.

How to Simplify SNF Billing

Best Practices for POS 31 Claims

Always verify patient discharge status from hospitals
Train staff on skilled nursing billing rules
Use POS 31 Medicare billing correctly for Part A/B claims
Double-check documentation for rehab and nursing requirements

Streamlining Workflows with Technology

Using automated medical billing software reduces errors in POS coding. Practices that integrated tech tools saw a 25% drop in SNF claim denials within months.

👉 Learn how experts handle medical billing services and medical coding.

How eServMD Helps Doctors with SNF Billing

At eServMD, we specialize in simplifying skilled nursing facility billing for providers. Our solutions include:

Claim accuracy & compliance – Avoid POS 31 billing errors with expert checks
Denial management – Quick resubmissions for common SNF claim denials
Faster reimbursements – Optimized SNF claims billing process

Whether it’s eligibility checks or credentialing support, eServMD ensures your claims stay compliant.

👉 Explore our eligibility & authorization, credentialing, and RCM services.

Conclusion

POS 31 in medical billing is essential for doctors and billing teams managing SNF claims. By understanding the differences between inpatient, outpatient, and SNF billing, providers can reduce errors, improve compliance, and boost reimbursements.

If you want to simplify SNF claims and avoid POS 31 billing errors, partnering with experts can help.

👉 Schedule a demo with eServMD and see how we make SNF claims made simple.

FAQS — POS 31 in Medical Billing

Q1. What does POS 31 mean in medical billing?

POS 31 in medical billing refers to services provided in a Skilled Nursing Facility (SNF). According to CMS, this code applies when patients require medical supervision, rehabilitation, or nursing care that does not qualify as inpatient hospital care. Correct usage ensures accurate reimbursements and compliance with Medicare billing rules.

Q2. When should providers use POS 31 for claims?

Providers should use POS 31 when billing for patients admitted to a Skilled Nursing Facility for rehab or ongoing medical care. This includes services like physical therapy, post-surgical recovery, or extended nursing supervision. Using any other POS code, such as POS 21 (inpatient hospital) or POS 22 (outpatient hospital), can result in claim denials.

Q3. What are common mistakes in POS 31 billing?

The most frequent errors include:

Using POS 21 or 22 instead of POS 31 for SNF services
Submitting incomplete or unclear documentation
Confusing short-term rehab stays with outpatient visits
These POS 31 billing errors often lead to claim denials, delayed payments, and compliance risks.

Q4. How can doctors reduce denials for SNF claims?

Doctors can minimize SNF claim denials by:

Training staff on POS 31 billing best practices
Ensuring accurate documentation of patient status and care needs
Using medical billing software to avoid coding errors
Partnering with an RCM service like eServMD, which specializes in denial management and compliance for SNF billing.