CMPs Reduced for Self-Reporting and Correction of Violations
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 (CMP) 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.
Under the new rule, an independent informal dispute resolution process will be available when a CMP is imposed. Following an independent informal dispute resolution, CMP funds will be held in an escrow account pending completion of any appeal. If the appeal succeeds, the CMP funds will be returned to the nursing home with interest. According to CMS, CMPs currently range from $50 to $10,000 per day of noncompliance.
Tammy Schroeder | |||||||
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