Mistaged Pressure Ulcers Can Cost Your SNF a Higher Paying RUG Find out how to differentiate a stage 2 from a stage 3. As you know, coding pressure ulcers accurately on the MDS 3.0 isn't just a matter of ensuring good care and survey outcomes -- it also affects the facility's RUG payment in some cases. And with Medicaid shortfalls and the costs of the MDS 3.0 rollout, SNFs can use every dollar they are rightfully owed. Reality: Understaging or miscoding a pressure ulcer as a stage 2 when it's really a stage 3 may mean a resident won't go in Special Care Low based on a stage 3 pressure ulcer and two or more skin care treatments. Tip: "Stage 2 pressure ulcers do not have slough or eschar," says Dorothy Doughty, MN, RN, CWOCN, FAAN, director of the Emory University of WOC Nursing Education Center in Atlanta. What the manual states: When coding M0700 (most severe tissue type for any pressure ulcer), the RAI User's Manual says you should not code stage 2 pressure ulcers "as having granulation, slough, or necrotic tissue as by definition they do not have this extent of tissue damage."