Published in the American Health Lawyers Association's Healthcare Liability and Litigation Practice Group, May 2011 Health Briefs e-Newsletter

As of January 1, 2012, nursing homes will be subject to new regulations governing how civil monetary penalties (CMPs) may be imposed and collected.¹ The Final Rule, issued on March 18, 2011, by the U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services (CMS), expands the penalties that may be assessed if a nursing home fails to comply with the federal participation requirements set forth in Section 6111 of the Patient Protection and Affordable Care Act (ACA).² The potential impact of the regulations has been viewed with trepidation by many nursing home operators, although beneath the surface the new rules and regulations provide some benefits to nursing homes. Indeed, notwithstanding the onerous expansion of CMPs under the new regulations, nursing homes soon may be able to avoid CMPs being placed in escrow accounts for less serious deficiencies and to reduce CMPs if the nursing home self-reports.

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