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Penalties for nursing homes

Medicare may impose penalties on a nursing home when there's a serious health or fire safety citation or if the nursing home fails to correct a citation for a long period of time. The 2 types of penalties include:

  • Fines: Fines may be imposed once per citation or each day until the nursing home corrects the citation.
  • Payment denials: During a payment denial, the government stops Medicare or Medicaid payments to the nursing home for new residents until the nursing home corrects the citation.
Why is this information important?

If the nursing home doesn't correct these problems, Medicare will end its agreement with the nursing home. This means the nursing home is no longer certified to provide and be paid for care to people with Medicare or Medicaid. Residents with Medicare or Medicaid who are living in the home at the time of the termination will be moved to a different nursing home that is still certified by CMS.

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