Code system for procedures that is used when billing Medicare patients in skilled nursing facilities, home health agencies, inpatient rehabilitation facilities, and swing bed facilities in rural hospitals. HIPPS codes are alphanumerical codes of five digits: The first three are derived from the resource utilization group (RUG), and the last two represent a modifier code for the specific assessment. This code is put in Form Locator 44 on the UB-04 Medicare claim form. Any patient coded in one of the top 26 RUGs is a skilled patient.