Our Take: Following CMS’s repeal of a federal staffing mandate, attorneys general from 18 states are urging the agency to adopt a replacement rule applied only to for-profit nursing homes with related-party financial arrangements or private equity ownership. The proposal also calls for reinstating suspended ownership and financial disclosure requirements, citing fraud schemes enabled by opaque ownership structures. ▼
If enacted, these operators could face binding minimum staffing thresholds with direct implications for PBJ compliance and five-star ratings tied to staffing adequacy.
18 States Urge CMS to Consider Nursing Home Staffing Mandate for For-Profits to Curb ‘Fraud Schemes’
The more tailored rule would apply only to for-profit nursing homes that exhibit high-risk financial and ownership practices, including through related-party real estate arrangements, management or staffing fees paid to affiliates, related-party therapy services, collusive loans or private equity ownership, the attorneys general said.
— Skilled Nursing News, February 4, 2026
States Push CMS for New Staffing Rule Targeting For-Profit Nursing Homes, Related-Party Payers
“We urge CMS to enact a replacement regulation that mandates tailored quantitative minimum staffing requirements, which would prevent Medicare and Medicaid fraud, protect vulnerable long-term care residents, and improve access to care.”
— McKnight’s Long-Term Care, February 3, 2026