New proposed rule would reduce some nursing home penalties by 50%

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A newly proposed rule from the Centers for Medicare & Medicaid Services would, in some cases, reduce civil monetary penalties (CMP) issued against nursing homes by as much as 50%.

To qualify for the reduced CMP under the rule, a nursing home would have to report a deficiency before it is discovered by either CMS or a state agency, and correct the deficiency within 10 days. The penalty reduction would not apply in cases of immediate jeopardy, or in cases that are part of a recurring pattern of harm, according to the proposal. The new rule also would establish an escrow account where CMP would be held during any appeals process. In the event of a successful appeal, CMS would return the money with interest.

Currently, CMPs range from $50 to $10,000 per day of noncompliance, according to background information in the proposed rule. The rule was created in accordance with section 6111 of the Patient Protection and Affordable Care Act. CMS is asking for feedback on the rule, which was published Monday in the Federal Register. Comments are due by August 11.

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