Feds Freeze Nursing Home Grants for Complete Analysis of CMP Program

The Centers for Medicare & Medicaid Services (CMS) has recently brought most of the grants issued from its civil monetary penalty reinvestment program to a standstill. This action leaves numerous nursing home leaders without a crucial funding source needed for programs centered on patients and staff.

In a statement provided to McKnight’s Long-Term News, CMS did not specify an end date for potential delays caused by an ongoing extensive review of the CMP reinvestment program, which was initiated in April. The agency stated that during this review, the approval process for some CMP reinvestment funds applications could experience delays as they strive to maintain the distribution’s integrity, aligning with their goal of enhancing nursing home residents’ quality of life and pushing forward care innovations.

However, CMS remained tight-lipped about the review’s rationale or what elements of the largely state-controlled reinvestment program they were investigating. The fund, year after year, distributes a portion of the money collected from nursing homes due to non-compliance. Selected applications are granted to use these funds for programs catering to residents and families, joint staff training for Quality Assurance and Performance Improvement (QAPI) initiatives, and other limited projects.

While CMS continues to approve grants related to COVID interventions, such as air filtration systems, Medicaid agencies in all states were informed about the delay for more general grants. This pause in funding has already led to considerable disappointment among providers in some states.

In Pennsylvania, the Department of Human Services announced its 2023 CMP grant application window but had to backtrack on the dates in an email sent on May 23, as reported by the Pennsylvania Health Care Association. Garry Pezzano, president & CEO of LeadingAge PA, stated that the suspension has a significant impact as providers depend on CMP grants and other additional funding sources to bridge the gap between their reimbursement and the cost of implementing innovative programs, infrastructure improvements, and providing top-tier, necessary care to seniors.

Carol McKinley, president, and CEO of Simpson, a company that runs three retirement communities in the Philadelphia area, also expressed her concerns. Simpson, in 2022, had applied for $84,000 in CMP funds. Due to the original application’s expiration, Pennsylvania officials asked Simpson to reapply this February. Although Simpson was informed that it was one of five grantees under consideration, the company did not hear back after resubmitting.

CMS, instead of issuing a public memo about its grant halt, communicated directly with states regarding potential delays. McKinley, who is also a LeadingAge PA board member, learned about the nationwide delays through the organization. She expressed her concern over the uncertainties surrounding the funds necessary for initiating the Comfort Matters training for staff. This program would have provided innovative skills and weekly coaching for frontline staff working with seniors suffering from cognitive decline and dementia.

McKinley warned that the current pause in grant funding might suppress innovation and hinder the program’s survival. She reflected on the lost time she could have used to write a grant for a different project, and voiced her frustration with the unreliability of the CMP funding. Other providers also criticized the CMS grants for being limited and the process for being overly complicated and rejection-prone.

The temporary pause also disappointed Rick Abrams, president and CEO of the Wisconsin Health Care Association (WHCA). The association was collaborating with the state’s survey agency to develop a CMP-funded Customer Services Best Practice Education and Training program for nursing home participants, but the proposal is now in limbo.

Despite the mounting concerns, the CMS only stated that it will issue updated guidance and information on the CMP reinvestment program through a quality and safety oversight memo once the review is completed, leaving providers in uncertainty for an undefined period.