The Centers for Medicare and Medicaid Services (CMS) released the final rule “Civil Money Penalties for Nursing Homes,” which allows proactive nursing homes to reduce civil money penalties (CMPs) by 50% by self-reporting and promptly addressing compliance violations. The rule, created through a section of the Patient Protection and Affordable Care Act, will become effective on January 1, 2012.

To take advantage of the 50% reduction, a nursing home must meet the following conditions:

  • The nursing home must self-report the compliance violation before it is identified by CMS or the State.
  • The nursing home must correct noncompliance within 15 calendar days of the incident causing the noncompliance or 10 calendar days from the date the CMP was imposed, whichever is earlier.
  • The violation must not involve immediate jeopardy or patient harm.
  • The nursing home must waive its right to administrative hearings.