The Resident Assessment Instrument/Minimum Data Set (RAI/MDS) is a comprehensive assessment and care planning process used by the nursing home industry since 1990 as a requirement for nursing home participation in the Medicare and Medicaid programs. The RAI/MDS provides data for monitoring changes in resident status that are consistent and reliable over time. The VA commitment to quality propelled the implementation of the RAI/MDS in its nursing homes now known as VA Community Living Centers (CLC). In addition to providing consistent clinical information, the RAI/MDS can be used as a measure of both quality and resource utilization, thereby serving as a benchmark for quality and cost data within the VA as well as with community based nursing facilities. Workload based on RAI/MDS can be calculated electronically by the interactions of the elements of the MDS data and grouped into 53 categories referred to as Resource Utilization Groups (RUG-IV). Residents are assessed quarterly. The data is grouped for analysis at the Austin Information Technology Center (AITC). Conversion to electronic data entry and transmission to the AITC was completed system-wide by year-end 2000. In 2010, the Centeres for Medicare and Medicaide Services released a significantly upgraded version, MDS 3.0, to begin to be implemented on October 1, 2011 in VHA CLCs. Training is underway currently. The MDS 3.0 will generate a new set of Quality Indicators and Quality Monitors as well the RUGs will increase to 64 RUGs from the current 53 RUG groups.