Rule allows proactive nursing homes to reduce inspection-related fines

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Nursing homes will be subject to escrow for all civil monetary penalties, CMS announces
Nursing homes will be subject to escrow for all civil monetary penalties, CMS announces

Nursing homes that self-report compliance violations and quickly address them will see their fines cut in half, under a new final rule released Thursday by the Centers for Medicare & Medicaid Services.

Facilities must report the violation before it is identified by CMS or by state inspectors in order to qualify for reduced civil monetary penalties. Operators are required to forego administrative hearings to remain eligible. The reduction does not apply when immediate jeopardy or patient harm is possible. If a nursing home decides to appeal violations, the CMP would be held in an escrow account, and returned to the home with interest if the appeal succeeds.

The rule was created through a section of the Patient Protection and Affordable Care Act, and was originally proposed in July 2010. (McKnight's, 7/13/10) CMPs currently range from $50 to $10,000 per day of noncompliance, according to CMS. The rule will take effect Jan. 1.

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