CMS Rescinds CMP Guidance–July 2021

In an unexpected and abrupt move this week, CMS has rescinded guidance that CMPs should be issued on a per-instance basis only.  A posting on the CMS website says “Upon further consideration, CMS has determined that the agency should retain the discretion at this time to impose a per-day penalty where appropriate to address specific circumstances of prior noncompliance. We will work within CMS operations to apply such discretion, and any final notice of noncompliance will set forth the penalty, and the reason(s) for imposing per-instance or per-day penalties.” 

This decision means that CMPS can be issued on a per-diem basis, which can be significantly more costly to providers.  While the 2017 guidance has been rescinded, no new guidance has been issued at this point. CHCA will work with the American Health Care Association to push for reconsideration of this change.  Yesterday AHCA issued the following statement: “The purpose behind government oversight is to ensure the safety and wellbeing of our residents—and nursing home providers share in that purpose. We must foster an approach where nursing homes, regulators and consumer advocates have a shared responsibility to do what’s best for the resident and remedying identified issues, not simply citing and fining. That means creating incentives for nursing homes to enhance the quality of care and properly funding these facilities to ensure they have the necessary resources to provide high quality care. When fines are justified, they should be done equitably, not based on when state surveyors can fulfill their duties. Per diem CMPs only take precious resources away from an already underfunded industry, especially during an unprecedented time when nursing homes need every support to protect their residents.”