Our Take: On August 22, 2022, CMS issued a CMCS Informational Bulletin directing states to use existing Medicaid authority and payment tools to improve nursing home staffing levels, worker compensation, and quality of care for Medicaid beneficiaries. The bulletin establishes no new federal requirements but signals CMS’s expectation that states link nursing facility reimbursement to staffing and quality performance outcomes. ▼
Skilled nursing facilities should monitor state Medicaid payment policy closely, as this bulletin increases pressure on states to redesign rate methodologies around quality metrics and staffing benchmarks measured in part through PBJ-reported hours per resident day and Five Star Staffing ratings.
Medicaid enrollees residing in nursing homes will only experience better care through collaboration between states, CMS, providers, and other partners, and we look forward to working closely with them on this important effort. We know that low wages for staff can contribute to frequent turnover and dangerous staffing shortages at nursing homes, so we encourage states to work with these facilities to find solutions for training and improving staffing.
Citation: Centers for Medicare & Medicaid Services. “CMCS Informational Bulletin: Medicaid Nursing Facility Quality, Staffing, and Health Equity Initiatives.” Medicaid.gov, 22 Aug. 2022, www.medicaid.gov/federal-policy-guidance/downloads/cib08222022.pdf.
CMS: Medicaid Funding a ‘Key Lever’ to Improving Nursing Home Quality, Staffing
“Through initiatives like these, we expect that Medicaid beneficiaries residing in nursing facilities will receive better care through the collaboration of CMS and states to realize the goals outlined in the White House Biden-Harris Administration’s Nursing Home Reform Action Plan,” Daniel Tsai, deputy administrator and director for the Center for Medicaid and CHIP Services, said in the memo. He called Medicaid a “key lever” for accomplishing the goals set forth by the Biden administration.
— Skilled Nursing News, August 22, 2022
CMS Bulletin Presses States on Medicaid Nursing Home Spending
CMS is urging states to tie Medicaid payments to quality measures that will improve resident care and safety and ensure nursing homes are adequately resourced and staffed. The bulletin directs states “as appropriate, to provide adequate, performance-driven nursing facility rates to ultimately achieve better health care outcomes and address longstanding inequities for Medicaid beneficiaries residing in nursing facilities.”
— McKnight’s Long-Term Care News, August 22, 2022