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Civil Money Penalty (CMP) Funds

Sections 1819 and 1919 of the Social Security Act have been updated to incorporate specific provisions of the Affordable Care Act with regard to the collection and uses of CMP funds that are imposed by CMS when nursing homes do not meet requirements for long term care facilities.  Effective January 1, 2012, states must obtain prior approval from CMS for the use of federally imposed CMP funds.  States may direct collected CMP funds to a variety of capable organizations as long as funds are used in accordance with statutory intent, the use is consistent with Federal law and policy, and the use is approved by CMS.  

 

Who Can Apply To Use CMP Funds

Requests to use CMP funds may be made by a variety of capable organizations and entities, provided the responsible entity is qualified and capable of carrying out the intended project or use, is not in any conflict of interest relationship with the entity who will benefit from the intended project or use, is not a recipient of a contract or grant or other payment from Federal or State sources for the same project or use, and is not paid by a Federal or State source to perform the same function as the CMP project or use. 

 

Examples of potential applicants include:

  • Certified Nursing Homes
  • Consumer Advocacy Organizations
  • State Long-Term Care Ombudsman Programs
  • Quality Improvement Organizations
  • Private Contractors
  • Resident or Family Councils
  • Professional or State Nursing Home Associations
  • Academic or Research Institutions
  • State, Local, or Tribal Governments
  • Profit, Not-for-Profit, or Other Types of Organizations

 

How To Request CMP Funds

1) Complete the CMP Fund Application

2) E-mail to CMPAPPLICATION_OIG@KY.GOV

 

Permitted Uses of CMP Funds Include
  • CMP funds must be used to support activities that benefit nursing home residents.
  • Support and protection of residents of a facility that closes either voluntarily or involuntarily, or, is decertified.
  • Projects that support resident and family councils in assuring quality care in facilities.
  • Projects that support consumer involvement in assuring quality care in facilities.
  • Projects that support facility improvement initiatives.

 

 

 

Prohibited Uses of CMP Funds Include:
  • Projects for which a conflict of interest exists or the appearance of a conflict of interest.
  • Payment to entities to perform functions for which they are already paid by State or Federal sources.
  • Payment for capital improvements to a nursing home, or to build a nursing home.
  • Payment for nursing home services or supplies that are the responsibility of the nursing homes, such as laundry, linen, food, heat, staffing costs, etc.
  • Payment of salaries of temporary managers who are actively managing a nursing home.
  • Funding for recruitment or certification training for Long Term Care Ombudsman staff or volunteers, or, to investigate and work to resolve complaints.

 

Additional Information

For additional information, please refer to CMS S&C Memo 12-13-NH

 

 

 

Last Updated 7/17/2012
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