Laws: Cases and Codes : U.S. Code : Title 42 : Section 1396r


   
U.S. Code as of: 01/19/04
Section 1396r. Requirements for nursing facilities

    (a) "Nursing facility" defined
      In this subchapter, the term "nursing facility" means an
    institution (or a distinct part of an institution) which - 
        (1) is primarily engaged in providing to residents - 
          (A) skilled nursing care and related services for residents
        who require medical or nursing care,
          (B) rehabilitation services for the rehabilitation of
        injured, disabled, or sick persons, or
          (C) on a regular basis, health-related care and services to
        individuals who because of their mental or physical condition
        require care and services (above the level of room and board)
        which can be made available to them only through institutional
        facilities,

      and is not primarily for the care and treatment of mental
      diseases;
        (2) has in effect a transfer agreement (meeting the
      requirements of section 1395x(l) of this title) with one or more
      hospitals having agreements in effect under section 1395cc of
      this title; and
        (3) meets the requirements for a nursing facility described in
      subsections (b), (c), and (d) of this section.

    Such term also includes any facility which is located in a State on
    an Indian reservation and is certified by the Secretary as meeting
    the requirements of paragraph (1) and subsections (b), (c), and (d)
    of this section.
    (b) Requirements relating to provision of services
      (1) Quality of life
        (A) In general
          A nursing facility must care for its residents in such a
        manner and in such an environment as will promote maintenance
        or enhancement of the quality of life of each resident.
        (B) Quality assessment and assurance
          A nursing facility must maintain a quality assessment and
        assurance committee, consisting of the director of nursing
        services, a physician designated by the facility, and at least
        3 other members of the facility's staff, which (i) meets at
        least quarterly to identify issues with respect to which
        quality assessment and assurance activities are necessary and
        (ii) develops and implements appropriate plans of action to
        correct identified quality deficiencies. A State or the
        Secretary may not require disclosure of the records of such
        committee except insofar as such disclosure is related to the
        compliance of such committee with the requirements of this
        subparagraph.
      (2) Scope of services and activities under plan of care
        A nursing facility must provide services and activities to
      attain or maintain the highest practicable physical, mental, and
      psychosocial well-being of each resident in accordance with a
      written plan of care which - 
          (A) describes the medical, nursing, and psychosocial needs of
        the resident and how such needs will be met;
          (B) is initially prepared, with the participation to the
        extent practicable of the resident or the resident's family or
        legal representative, by a team which includes the resident's
        attending physician and a registered professional nurse with
        responsibility for the resident; and
          (C) is periodically reviewed and revised by such team after
        each assessment under paragraph (3).
      (3) Residents' assessment
        (A) Requirement
          A nursing facility must conduct a comprehensive, accurate,
        standardized, reproducible assessment of each resident's
        functional capacity, which assessment - 
            (i) describes the resident's capability to perform daily
          life functions and significant impairments in functional
          capacity;
            (ii) is based on a uniform minimum data set specified by
          the Secretary under subsection (f)(6)(A) of this section;
            (iii) uses an instrument which is specified by the State
          under subsection (e)(5) of this section; and
            (iv) includes the identification of medical problems.
        (B) Certification
          (i) In general
            Each such assessment must be conducted or coordinated (with
          the appropriate participation of health professionals) by a
          registered professional nurse who signs and certifies the
          completion of the assessment. Each individual who completes a
          portion of such an assessment shall sign and certify as to
          the accuracy of that portion of the assessment.
          (ii) Penalty for falsification
            (I) An individual who willfully and knowingly certifies
          under clause (i) a material and false statement in a resident
          assessment is subject to a civil money penalty of not more
          than $1,000 with respect to each assessment.
            (II) An individual who willfully and knowingly causes
          another individual to certify under clause (i) a material and
          false statement in a resident assessment is subject to a
          civil money penalty of not more than $5,000 with respect to
          each assessment.
            (III) The provisions of section 1320a-7a of this title
          (other than subsections (a) and (b)) shall apply to a civil
          money penalty under this clause in the same manner as such
          provisions apply to a penalty or proceeding under section
          1320a-7a(a) of this title.
          (iii) Use of independent assessors
            If a State determines, under a survey under subsection (g)
          of this section or otherwise, that there has been a knowing
          and willful certification of false assessments under this
          paragraph, the State may require (for a period specified by
          the State) that resident assessments under this paragraph be
          conducted and certified by individuals who are independent of
          the facility and who are approved by the State.
        (C) Frequency
          (i) In general
            Such an assessment must be conducted - 
              (I) promptly upon (but no later than 14 days after the
            date of) admission for each individual admitted on or after
            October 1, 1990, and by not later than October 1, 1991, for
            each resident of the facility on that date;
              (II) promptly after a significant change in the
            resident's physical or mental condition; and
              (III) in no case less often than once every 12 months.
          (ii) Resident review
            The nursing facility must examine each resident no less
          frequently than once every 3 months and, as appropriate,
          revise the resident's assessment to assure the continuing
          accuracy of the assessment.
        (D) Use
          The results of such an assessment shall be used in
        developing, reviewing, and revising the resident's plan of care
        under paragraph (2).
        (E) Coordination
          Such assessments shall be coordinated with any State-required
        preadmission screening program to the maximum extent
        practicable in order to avoid duplicative testing and effort.
        In addition, a nursing facility shall notify the State mental
        health authority or State mental retardation or developmental
        disability authority, as applicable, promptly after a
        significant change in the physical or mental condition of a
        resident who is mentally ill or mentally retarded.
        (F) Requirements relating to preadmission screening for
          mentally ill and mentally retarded individuals
          Except as provided in clauses (ii) and (iii) of subsection
        (e)(7)(A) of this section, a nursing facility must not admit,
        on or after January 1, 1989, any new resident who - 
            (i) is mentally ill (as defined in subsection (e)(7)(G)(i)
          of this section) unless the State mental health authority has
          determined (based on an independent physical and mental
          evaluation performed by a person or entity other than the
          State mental health authority) prior to admission that,
          because of the physical and mental condition of the
          individual, the individual requires the level of services
          provided by a nursing facility, and, if the individual
          requires such level of services, whether the individual
          requires specialized services for mental illness, or
            (ii) is mentally retarded (as defined in subsection
          (e)(7)(G)(ii) of this section) unless the State mental
          retardation or developmental disability authority has
          determined prior to admission that, because of the physical
          and mental condition of the individual, the individual
          requires the level of services provided by a nursing
          facility, and, if the individual requires such level of
          services, whether the individual requires specialized
          services for mental retardation.

        A State mental health authority and a State mental retardation
        or developmental disability authority may not delegate (by
        subcontract or otherwise) their responsibilities under this
        subparagraph to a nursing facility (or to an entity that has a
        direct or indirect affiliation or relationship with such a
        facility).
      (4) Provision of services and activities
        (A) In general
          To the extent needed to fulfill all plans of care described
        in paragraph (2), a nursing facility must provide (or arrange
        for the provision of) - 
            (i) nursing and related services and specialized
          rehabilitative services to attain or maintain the highest
          practicable physical, mental, and psychosocial well-being of
          each resident;
            (ii) medically-related social services to attain or
          maintain the highest practicable physical, mental, and
          psychosocial well-being of each resident;
            (iii) pharmaceutical services (including procedures that
          assure the accurate acquiring, receiving, dispensing, and
          administering of all drugs and biologicals) to meet the needs
          of each resident;
            (iv) dietary services that assure that the meals meet the
          daily nutritional and special dietary needs of each resident;
            (v) an on-going program, directed by a qualified
          professional, of activities designed to meet the interests
          and the physical, mental, and psychosocial well-being of each
          resident;
            (vi) routine dental services (to the extent covered under
          the State plan) and emergency dental services to meet the
          needs of each resident; and
            (vii) treatment and services required by mentally ill and
          mentally retarded residents not otherwise provided or
          arranged for (or required to be provided or arranged for) by
          the State.

        The services provided or arranged by the facility must meet
        professional standards of quality.
        (B) Qualified persons providing services
          Services described in clauses (i), (ii), (iii), (iv), and
        (vi) of subparagraph (A) must be provided by qualified persons
        in accordance with each resident's written plan of care.
        (C) Required nursing care; facility waivers
          (i) General requirements
            With respect to nursing facility services provided on or
          after October 1, 1990, a nursing facility - 
              (I) except as provided in clause (ii), must provide
            24-hour licensed nursing services which are sufficient to
            meet the nursing needs of its residents, and
              (II) except as provided in clause (ii), must use the
            services of a registered professional nurse for at least 8
            consecutive hours a day, 7 days a week.
          (ii) Waiver by State
            To the extent that a facility is unable to meet the
          requirements of clause (i), a State may waive such
          requirements with respect to the facility if - 
              (I) the facility demonstrates to the satisfaction of the
            State that the facility has been unable, despite diligent
            efforts (including offering wages at the community
            prevailing rate for nursing facilities), to recruit
            appropriate personnel,
              (II) the State determines that a waiver of the
            requirement will not endanger the health or safety of
            individuals staying in the facility,
              (III) the State finds that, for any such periods in which
            licensed nursing services are not available, a registered
            professional nurse or a physician is obligated to respond
            immediately to telephone calls from the facility,
              (IV) the State agency granting a waiver of such
            requirements provides notice of the waiver to the State
            long-term care ombudsman (established under section
            307(a)(12) )1(! of the Older Americans Act of 1965) and the
            protection and advocacy system in the State for the
            mentally ill and the mentally retarded, and

              (V) the nursing facility that is granted such a waiver by
            a State notifies residents of the facility (or, where
            appropriate, the guardians or legal representatives of such
            residents) and members of their immediate families of the
            waiver.

          A waiver under this clause shall be subject to annual review
          and to the review of the Secretary and subject to clause
          (iii) shall be accepted by the Secretary for purposes of this
          subchapter to the same extent as is the State's certification
          of the facility. In granting or renewing a waiver, a State
          may require the facility to use other qualified, licensed
          personnel.
          (iii) Assumption of waiver authority by Secretary
            If the Secretary determines that a State has shown a clear
          pattern and practice of allowing waivers in the absence of
          diligent efforts by facilities to meet the staffing
          requirements, the Secretary shall assume and exercise the
          authority of the State to grant waivers.
      (5) Required training of nurse aides
        (A) In general
          (i) Except as provided in clause (ii), a nursing facility
        must not use on a full-time basis any individual as a nurse
        aide in the facility on or after October 1, 1990, for more than
        4 months unless the individual - 
            (I) has completed a training and competency evaluation
          program, or a competency evaluation program, approved by the
          State under subsection (e)(1)(A) of this section, and
            (II) is competent to provide nursing or nursing-related
          services.

          (ii) A nursing facility must not use on a temporary, per
        diem, leased, or on any other basis other than as a permanent
        employee any individual as a nurse aide in the facility on or
        after January 1, 1991, unless the individual meets the
        requirements described in clause (i).
        (B) Offering competency evaluation programs for current
          employees
          A nursing facility must provide, for individuals used as a
        nurse aide by the facility as of January 1, 1990, for a
        competency evaluation program approved by the State under
        subsection (e)(1) of this section and such preparation as may
        be necessary for the individual to complete such a program by
        October 1, 1990.
        (C) Competency
          The nursing facility must not permit an individual, other
        than in a training and competency evaluation program approved
        by the State, to serve as a nurse aide or provide services of a
        type for which the individual has not demonstrated competency
        and must not use such an individual as a nurse aide unless the
        facility has inquired of any State registry established under
        subsection (e)(2)(A) of this section that the facility believes
        will include information concerning the individual.
        (D) Re-training required
          For purposes of subparagraph (A), if, since an individual's
        most recent completion of a training and competency evaluation
        program, there has been a continuous period of 24 consecutive
        months during none of which the individual performed nursing or
        nursing-related services for monetary compensation, such
        individual shall complete a new training and competency
        evaluation program, or a new competency evaluation program.
        (E) Regular in-service education
          The nursing facility must provide such regular performance
        review and regular in-service education as assures that
        individuals used as nurse aides are competent to perform
        services as nurse aides, including training for individuals
        providing nursing and nursing-related services to residents
        with cognitive impairments.
        (F) "Nurse aide" defined
          In this paragraph, the term "nurse aide" means any individual
        providing nursing or nursing-related services to residents in a
        nursing facility, but does not include an individual - 
            (i) who is a licensed health professional (as defined in
          subparagraph (G)) or a registered dietician, or
            (ii) who volunteers to provide such services without
          monetary compensation.
        (G) Licensed health professional defined
          In this paragraph, the term "licensed health professional"
        means a physician, physician assistant, nurse practitioner,
        physical, speech, or occupational therapist, physical or
        occupational therapy assistant, registered professional nurse,
        licensed practical nurse, or licensed or certified social
        worker.
      (6) Physician supervision and clinical records
        A nursing facility must - 
          (A) require that the health care of every resident be
        provided under the supervision of a physician (or, at the
        option of a State, under the supervision of a nurse
        practitioner, clinical nurse specialist, or physician assistant
        who is not an employee of the facility but who is working in
        collaboration with a physician);
          (B) provide for having a physician available to furnish
        necessary medical care in case of emergency; and
          (C) maintain clinical records on all residents, which records
        include the plans of care (described in paragraph (2)) and the
        residents' assessments (described in paragraph (3)), as well as
        the results of any pre-admission screening conducted under
        subsection (e)(7) of this section.
      (7) Required social services
        In the case of a nursing facility with more than 120 beds, the
      facility must have at least one social worker (with at least a
      bachelor's degree in social work or similar professional
      qualifications) employed full-time to provide or assure the
      provision of social services.
      (8) Information on nurse staffing
        (A) In general
          A nursing facility shall post daily for each shift the
        current number of licensed and unlicensed nursing staff
        directly responsible for resident care in the facility. The
        information shall be displayed in a uniform manner (as
        specified by the Secretary) and in a clearly visible place.
        (B) Publication of data
          A nursing facility shall, upon request, make available to the
        public the nursing staff data described in subparagraph (A).
    (c) Requirements relating to residents' rights
      (1) General rights
        (A) Specified rights
          A nursing facility must protect and promote the rights of
        each resident, including each of the following rights:
          (i) Free choice
            The right to choose a personal attending physician, to be
          fully informed in advance about care and treatment, to be
          fully informed in advance of any changes in care or treatment
          that may affect the resident's well-being, and (except with
          respect to a resident adjudged incompetent) to participate in
          planning care and treatment or changes in care and treatment.
          (ii) Free from restraints
            The right to be free from physical or mental abuse,
          corporal punishment, involuntary seclusion, and any physical
          or chemical restraints imposed for purposes of discipline or
          convenience and not required to treat the resident's medical
          symptoms. Restraints may only be imposed - 
              (I) to ensure the physical safety of the resident or
            other residents, and
              (II) only upon the written order of a physician that
            specifies the duration and circumstances under which the
            restraints are to be used (except in emergency
            circumstances specified by the Secretary until such an
            order could reasonably be obtained).
          (iii) Privacy
            The right to privacy with regard to accommodations, medical
          treatment, written and telephonic communications, visits, and
          meetings of family and of resident groups.
          (iv) Confidentiality
            The right to confidentiality of personal and clinical
          records and to access to current clinical records of the
          resident upon request by the resident or the resident's legal
          representative, within 24 hours (excluding hours occurring
          during a weekend or holiday) after making such a request.
          (v) Accommodation of needs
            The right - 
              (I) to reside and receive services with reasonable
            accommodation of individual needs and preferences, except
            where the health or safety of the individual or other
            residents would be endangered, and
              (II) to receive notice before the room or roommate of the
            resident in the facility is changed.
          (vi) Grievances
            The right to voice grievances with respect to treatment or
          care that is (or fails to be) furnished, without
          discrimination or reprisal for voicing the grievances and the
          right to prompt efforts by the facility to resolve grievances
          the resident may have, including those with respect to the
          behavior of other residents.
          (vii) Participation in resident and family groups
            The right of the resident to organize and participate in
          resident groups in the facility and the right of the
          resident's family to meet in the facility with the families
          of other residents in the facility.
          (viii) Participation in other activities
            The right of the resident to participate in social,
          religious, and community activities that do not interfere
          with the rights of other residents in the facility.
          (ix) Examination of survey results
            The right to examine, upon reasonable request, the results
          of the most recent survey of the facility conducted by the
          Secretary or a State with respect to the facility and any
          plan of correction in effect with respect to the facility.
          (x) Refusal of certain transfers
            The right to refuse a transfer to another room within the
          facility, if a purpose of the transfer is to relocate the
          resident from a portion of the facility that is not a skilled
          nursing facility (for purposes of subchapter XVIII of this
          chapter) to a portion of the facility that is such a skilled
          nursing facility.
          (xi) Other rights
            Any other right established by the Secretary.

        Clause (iii) shall not be construed as requiring the provision
        of a private room. A resident's exercise of a right to refuse
        transfer under clause (x) shall not affect the resident's
        eligibility or entitlement to medical assistance under this
        subchapter or a State's entitlement to Federal medical
        assistance under this subchapter with respect to services
        furnished to such a resident.
        (B) Notice of rights
          A nursing facility must - 
            (i) inform each resident, orally and in writing at the time
          of admission to the facility, of the resident's legal rights
          during the stay at the facility and of the requirements and
          procedures for establishing eligibility for medical
          assistance under this subchapter, including the right to
          request an assessment under section 1396r-5(c)(1)(B) of this
          title;
            (ii) make available to each resident, upon reasonable
          request, a written statement of such rights (which statement
          is updated upon changes in such rights) including the notice
          (if any) of the State developed under subsection (e)(6) of
          this section;
            (iii) inform each resident who is entitled to medical
          assistance under this subchapter - 
              (I) at the time of admission to the facility or, if
            later, at the time the resident becomes eligible for such
            assistance, of the items and services (including those
            specified under section 1396a(a)(28)(B) of this title) that
            are included in nursing facility services under the State
            plan and for which the resident may not be charged (except
            as permitted in section 1396o of this title), and of those
            other items and services that the facility offers and for
            which the resident may be charged and the amount of the
            charges for such items and services, and
              (II) of changes in the items and services described in
            subclause (I) and of changes in the charges imposed for
            items and services described in that subclause; and

            (iv) inform each other resident, in writing before or at
          the time of admission and periodically during the resident's
          stay, of services available in the facility and of related
          charges for such services, including any charges for services
          not covered under subchapter XVIII of this chapter or by the
          facility's basic per diem charge.

        The written description of legal rights under this subparagraph
        shall include a description of the protection of personal funds
        under paragraph (6) and a statement that a resident may file a
        complaint with a State survey and certification agency
        respecting resident abuse and neglect and misappropriation of
        resident property in the facility.
        (C) Rights of incompetent residents
          In the case of a resident adjudged incompetent under the laws
        of a State, the rights of the resident under this subchapter
        shall devolve upon, and, to the extent judged necessary by a
        court of competent jurisdiction, be exercised by, the person
        appointed under State law to act on the resident's behalf.
        (D) Use of psychopharmacologic drugs
          Psychopharmacologic drugs may be administered only on the
        orders of a physician and only as part of a plan (included in
        the written plan of care described in paragraph (2)) designed
        to eliminate or modify the symptoms for which the drugs are
        prescribed and only if, at least annually an independent,
        external consultant reviews the appropriateness of the drug
        plan of each resident receiving such drugs.
      (2) Transfer and discharge rights
        (A) In general
          A nursing facility must permit each resident to remain in the
        facility and must not transfer or discharge the resident from
        the facility unless - 
            (i) the transfer or discharge is necessary to meet the
          resident's welfare and the resident's welfare cannot be met
          in the facility;
            (ii) the transfer or discharge is appropriate because the
          resident's health has improved sufficiently so the resident
          no longer needs the services provided by the facility;
            (iii) the safety of individuals in the facility is
          endangered;
            (iv) the health of individuals in the facility would
          otherwise be endangered;
            (v) the resident has failed, after reasonable and
          appropriate notice, to pay (or to have paid under this
          subchapter or subchapter XVIII of this chapter on the
          resident's behalf) for a stay at the facility; or
            (vi) the facility ceases to operate.

        In each of the cases described in clauses (i) through (iv), the
        basis for the transfer or discharge must be documented in the
        resident's clinical record. In the cases described in clauses
        (i) and (ii), the documentation must be made by the resident's
        physician, and in the case described in clause (iv) the
        documentation must be made by a physician. For purposes of
        clause (v), in the case of a resident who becomes eligible for
        assistance under this subchapter after admission to the
        facility, only charges which may be imposed under this
        subchapter shall be considered to be allowable.
        (B) Pre-transfer and pre-discharge notice
          (i) In general
            Before effecting a transfer or discharge of a resident, a
          nursing facility must - 
              (I) notify the resident (and, if known, an immediate
            family member of the resident or legal representative) of
            the transfer or discharge and the reasons therefor,
              (II) record the reasons in the resident's clinical record
            (including any documentation required under subparagraph
            (A)), and
              (III) include in the notice the items described in clause
            (iii).
          (ii) Timing of notice
            The notice under clause (i)(I) must be made at least 30
          days in advance of the resident's transfer or discharge
          except - 
              (I) in a case described in clause (iii) or (iv) of
            subparagraph (A);
              (II) in a case described in clause (ii) of subparagraph
            (A), where the resident's health improves sufficiently to
            allow a more immediate transfer or discharge;
              (III) in a case described in clause (i) of subparagraph
            (A), where a more immediate transfer or discharge is
            necessitated by the resident's urgent medical needs; or
              (IV) in a case where a resident has not resided in the
            facility for 30 days.

          In the case of such exceptions, notice must be given as many
          days before the date of the transfer or discharge as is
          practicable.
          (iii) Items included in notice
            Each notice under clause (i) must include - 
              (I) for transfers or discharges effected on or after
            October 1, 1989, notice of the resident's right to appeal
            the transfer or discharge under the State process
            established under subsection (e)(3) of this section;
              (II) the name, mailing address, and telephone number of
            the State long-term care ombudsman (established under title
            III or VII of the Older Americans Act of 1965 [42 U.S.C.
            3021 et seq., 3058 et seq.] in accordance with section 712
            of the Act [42 U.S.C. 3058g]);
              (III) in the case of residents with developmental
            disabilities, the mailing address and telephone number of
            the agency responsible for the protection and advocacy
            system for developmentally disabled individuals established
            under subtitle C of the Developmental Disabilities
            Assistance and Bill of Rights Act of 2000 [42 U.S.C. 15041
            et seq.]; and
              (IV) in the case of mentally ill residents (as defined in
            subsection (e)(7)(G)(i) of this section), the mailing
            address and telephone number of the agency responsible for
            the protection and advocacy system for mentally ill
            individuals established under the Protection and Advocacy
            for Mentally Ill Individuals Act )2(! [42 U.S.C. 10801 et
            seq.].

        (C) Orientation
          A nursing facility must provide sufficient preparation and
        orientation to residents to ensure safe and orderly transfer or
        discharge from the facility.
        (D) Notice on bed-hold policy and readmission
          (i) Notice before transfer
            Before a resident of a nursing facility is transferred for
          hospitalization or therapeutic leave, a nursing facility must
          provide written information to the resident and an immediate
          family member or legal representative concerning - 
              (I) the provisions of the State plan under this
            subchapter regarding the period (if any) during which the
            resident will be permitted under the State plan to return
            and resume residence in the facility, and
              (II) the policies of the facility regarding such a
            period, which policies must be consistent with clause
            (iii).
          (ii) Notice upon transfer
            At the time of transfer of a resident to a hospital or for
          therapeutic leave, a nursing facility must provide written
          notice to the resident and an immediate family member or
          legal representative of the duration of any period described
          in clause (i).
          (iii) Permitting resident to return
            A nursing facility must establish and follow a written
          policy under which a resident - 
              (I) who is eligible for medical assistance for nursing
            facility services under a State plan,
              (II) who is transferred from the facility for
            hospitalization or therapeutic leave, and
              (III) whose hospitalization or therapeutic leave exceeds
            a period paid for under the State plan for the holding of a
            bed in the facility for the resident,

          will be permitted to be readmitted to the facility
          immediately upon the first availability of a bed in a
          semiprivate room in the facility if, at the time of
          readmission, the resident requires the services provided by
          the facility.
        (E) Information respecting advance directives
          A nursing facility must comply with the requirement of
        section 1396a(w) of this title (relating to maintaining written
        policies and procedures respecting advance directives).
        (F) Continuing rights in case of voluntary withdrawal from
          participation
          (i) In general
            In the case of a nursing facility that voluntarily
          withdraws from participation in a State plan under this
          subchapter but continues to provide services of the type
          provided by nursing facilities - 
              (I) the facility's voluntary withdrawal from
            participation is not an acceptable basis for the transfer
            or discharge of residents of the facility who were residing
            in the facility on the day before the effective date of the
            withdrawal (including those residents who were not entitled
            to medical assistance as of such day);
              (II) the provisions of this section continue to apply to
            such residents until the date of their discharge from the
            facility; and
              (III) in the case of each individual who begins residence
            in the facility after the effective date of such
            withdrawal, the facility shall provide notice orally and in
            a prominent manner in writing on a separate page at the
            time the individual begins residence of the information
            described in clause (ii) and shall obtain from each such
            individual at such time an acknowledgment of receipt of
            such information that is in writing, signed by the
            individual, and separate from other documents signed by
            such individual.

          Nothing in this subparagraph shall be construed as affecting
          any requirement of a participation agreement that a nursing
          facility provide advance notice to the State or the
          Secretary, or both, of its intention to terminate the
          agreement.
          (ii) Information for new residents
            The information described in this clause for a resident is
          the following:
              (I) The facility is not participating in the program
            under this subchapter with respect to that resident.
              (II) The facility may transfer or discharge the resident
            from the facility at such time as the resident is unable to
            pay the charges of the facility, even though the resident
            may have become eligible for medical assistance for nursing
            facility services under this subchapter.
          (iii) Continuation of payments and oversight authority
            Notwithstanding any other provision of this subchapter,
          with respect to the residents described in clause (i)(I), a
          participation agreement of a facility described in clause (i)
          is deemed to continue in effect under such plan after the
          effective date of the facility's voluntary withdrawal from
          participation under the State plan for purposes of - 
              (I) receiving payments under the State plan for nursing
            facility services provided to such residents;
              (II) maintaining compliance with all applicable
            requirements of this subchapter; and
              (III) continuing to apply the survey, certification, and
            enforcement authority provided under subsections (g) and
            (h) of this section (including involuntary termination of a
            participation agreement deemed continued under this
            clause).
          (iv) No application to new residents
            This paragraph (other than subclause (III) of clause (i))
          shall not apply to an individual who begins residence in a
          facility on or after the effective date of the withdrawal
          from participation under this subparagraph.
      (3) Access and visitation rights
        A nursing facility must - 
          (A) permit immediate access to any resident by any
        representative of the Secretary, by any representative of the
        State, by an ombudsman or agency described in subclause (II),
        (III), or (IV) of paragraph (2)(B)(iii), or by the resident's
        individual physician;
          (B) permit immediate access to a resident, subject to the
        resident's right to deny or withdraw consent at any time, by
        immediate family or other relatives of the resident;
          (C) permit immediate access to a resident, subject to
        reasonable restrictions and the resident's right to deny or
        withdraw consent at any time, by others who are visiting with
        the consent of the resident;
          (D) permit reasonable access to a resident by any entity or
        individual that provides health, social, legal, or other
        services to the resident, subject to the resident's right to
        deny or withdraw consent at any time; and
          (E) permit representatives of the State ombudsman (described
        in paragraph (2)(B)(iii)(II)), with the permission of the
        resident (or the resident's legal representative) and
        consistent with State law, to examine a resident's clinical
        records.
      (4) Equal access to quality care
        (A) In general
          A nursing facility must establish and maintain identical
        policies and practices regarding transfer, discharge, and the
        provision of services required under the State plan for all
        individuals regardless of source of payment.
        (B) Construction
          (i) Nothing prohibiting any charges for non-medicaid patients
            Subparagraph (A) shall not be construed as prohibiting a
          nursing facility from charging any amount for services
          furnished, consistent with the notice in paragraph (1)(B)
          describing such charges.
          (ii) No additional services required
            Subparagraph (A) shall not be construed as requiring a
          State to offer additional services on behalf of a resident
          than are otherwise provided under the State plan.
      (5) Admissions policy
        (A) Admissions
          With respect to admissions practices, a nursing facility must
        - 
            (i)(I) not require individuals applying to reside or
          residing in the facility to waive their rights to benefits
          under this subchapter or subchapter XVIII of this chapter,
          (II) not require oral or written assurance that such
          individuals are not eligible for, or will not apply for,
          benefits under this subchapter or subchapter XVIII of this
          chapter, and (III) prominently display in the facility
          written information, and provide to such individuals oral and
          written information, about how to apply for and use such
          benefits and how to receive refunds for previous payments
          covered by such benefits;
            (ii) not require a third party guarantee of payment to the
          facility as a condition of admission (or expedited admission)
          to, or continued stay in, the facility; and
            (iii) in the case of an individual who is entitled to
          medical assistance for nursing facility services, not charge,
          solicit, accept, or receive, in addition to any amount
          otherwise required to be paid under the State plan under this
          subchapter, any gift, money, donation, or other consideration
          as a precondition of admitting (or expediting the admission
          of) the individual to the facility or as a requirement for
          the individual's continued stay in the facility.
        (B) Construction
          (i) No preemption of stricter standards
            Subparagraph (A) shall not be construed as preventing
          States or political subdivisions therein from prohibiting,
          under State or local law, the discrimination against
          individuals who are entitled to medical assistance under the
          State plan with respect to admissions practices of nursing
          facilities.
          (ii) Contracts with legal representatives
            Subparagraph (A)(ii) shall not be construed as preventing a
          facility from requiring an individual, who has legal access
          to a resident's income or resources available to pay for care
          in the facility, to sign a contract (without incurring
          personal financial liability) to provide payment from the
          resident's income or resources for such care.
          (iii) Charges for additional services requested
            Subparagraph (A)(iii) shall not be construed as preventing
          a facility from charging a resident, eligible for medical
          assistance under the State plan, for items or services the
          resident has requested and received and that are not
          specified in the State plan as included in the term "nursing
          facility services".
          (iv) Bona fide contributions
            Subparagraph (A)(iii) shall not be construed as prohibiting
          a nursing facility from soliciting, accepting, or receiving a
          charitable, religious, or philanthropic contribution from an
          organization or from a person unrelated to the resident (or
          potential resident), but only to the extent that such
          contribution is not a condition of admission, expediting
          admission, or continued stay in the facility.
      (6) Protection of resident funds
        (A) In general
          The nursing facility - 
            (i) may not require residents to deposit their personal
          funds with the facility, and
            (ii) upon the written authorization of the resident, must
          hold, safeguard, and account for such personal funds under a
          system established and maintained by the facility in
          accordance with this paragraph.
        (B) Management of personal funds
          Upon written authorization of a resident under subparagraph
        (A)(ii), the facility must manage and account for the personal
        funds of the resident deposited with the facility as follows:
          (i) Deposit
            The facility must deposit any amount of personal funds in
          excess of $50 with respect to a resident in an interest
          bearing account (or accounts) that is separate from any of
          the facility's operating accounts and credits all interest
          earned on such separate account to such account. With respect
          to any other personal funds, the facility must maintain such
          funds in a non-interest bearing account or petty cash fund.
          (ii) Accounting and records
            The facility must assure a full and complete separate
          accounting of each such resident's personal funds, maintain a
          written record of all financial transactions involving the
          personal funds of a resident deposited with the facility, and
          afford the resident (or a legal representative of the
          resident) reasonable access to such record.
          (iii) Notice of certain balances
            The facility must notify each resident receiving medical
          assistance under the State plan under this subchapter when
          the amount in the resident's account reaches $200 less than
          the dollar amount determined under section 1382(a)(3)(B) of
          this title and the fact that if the amount in the account (in
          addition to the value of the resident's other nonexempt
          resources) reaches the amount determined under such section
          the resident may lose eligibility for such medical assistance
          or for benefits under subchapter XVI of this chapter.
          (iv) Conveyance upon death
            Upon the death of a resident with such an account, the
          facility must convey promptly the resident's personal funds
          (and a final accounting of such funds) to the individual
          administering the resident's estate.
        (C) Assurance of financial security
          The facility must purchase a surety bond, or otherwise
        provide assurance satisfactory to the Secretary, to assure the
        security of all personal funds of residents deposited with the
        facility.
        (D) Limitation on charges to personal funds
          The facility may not impose a charge against the personal
        funds of a resident for any item or service for which payment
        is made under this subchapter or subchapter XVIII of this
        chapter.
      (7) Limitation on charges in case of medicaid-eligible
        individuals
        (A) In general
          A nursing facility may not impose charges, for certain
        medicaid-eligible individuals for nursing facility services
        covered by the State under its plan under this subchapter, that
        exceed the payment amounts established by the State for such
        services under this subchapter.
        (B) "Certain medicaid-eligible individual" defined
          In subparagraph (A), the term "certain medicaid-eligible
        individual" means an individual who is entitled to medical
        assistance for nursing facility services in the facility under
        this subchapter but with respect to whom such benefits are not
        being paid because, in determining the amount of the
        individual's income to be applied monthly to payment for the
        costs of such services, the amount of such income exceeds the
        payment amounts established by the State for such services
        under this subchapter.
      (8) Posting of survey results
        A nursing facility must post in a place readily accessible to
      residents, and family members and legal representatives of
      residents, the results of the most recent survey of the facility
      conducted under subsection (g) of this section.
    (d) Requirements relating to administration and other matters
      (1) Administration
        (A) In general
          A nursing facility must be administered in a manner that
        enables it to use its resources effectively and efficiently to
        attain or maintain the highest practicable physical, mental,
        and psychosocial well-being of each resident (consistent with
        requirements established under subsection (f)(5) of this
        section).
        (B) Required notices
          If a change occurs in - 
            (i) the persons with an ownership or control interest (as
          defined in section 1320a-3(a)(3) of this title) in the
          facility,
            (ii) the persons who are officers, directors, agents, or
          managing employees (as defined in section 1320a-5(b) of this
          title) of the facility,
            (iii) the corporation, association, or other company
          responsible for the management of the facility, or
            (iv) the individual who is the administrator or director of
          nursing of the facility,

        the nursing facility must provide notice to the State agency
        responsible for the licensing of the facility, at the time of
        the change, of the change and of the identity of each new
        person, company, or individual described in the respective
        clause.
        (C) Nursing facility administrator
          The administrator of a nursing facility must meet standards
        established by the Secretary under subsection (f)(4) of this
        section.
      (2) Licensing and Life Safety Code
        (A) Licensing
          A nursing facility must be licensed under applicable State
        and local law.
        (B) Life Safety Code
          A nursing facility must meet such provisions of such edition
        (as specified by the Secretary in regulation) of the Life
        Safety Code of the National Fire Protection Association as are
        applicable to nursing homes; except that - 
            (i) the Secretary may waive, for such periods as he deems
          appropriate, specific provisions of such Code which if
          rigidly applied would result in unreasonable hardship upon a
          facility, but only if such waiver would not adversely affect
          the health and safety of residents or personnel, and
            (ii) the provisions of such Code shall not apply in any
          State if the Secretary finds that in such State there is in
          effect a fire and safety code, imposed by State law, which
          adequately protects residents of and personnel in nursing
          facilities.
      (3) Sanitary and infection control and physical environment
        A nursing facility must - 
          (A) establish and maintain an infection control program
        designed to provide a safe, sanitary, and comfortable
        environment in which residents reside and to help prevent the
        development and transmission of disease and infection, and
          (B) be designed, constructed, equipped, and maintained in a
        manner to protect the health and safety of residents,
        personnel, and the general public.
      (4) Miscellaneous
        (A) Compliance with Federal, State, and local laws and
          professional standards
          A nursing facility must operate and provide services in
        compliance with all applicable Federal, State, and local laws
        and regulations (including the requirements of section 1320a-3
        of this title) and with accepted professional standards and
        principles which apply to professionals providing services in
        such a facility.
        (B) Other
          A nursing facility must meet such other requirements relating
        to the health and safety of residents or relating to the
        physical facilities thereof as the Secretary may find
        necessary.
    (e) State requirements relating to nursing facility requirements
      As a condition of approval of its plan under this subchapter, a
    State must provide for the following:
      (1) Specification and review of nurse aide training and
        competency evaluation programs and of nurse aide competency
        evaluation programs
        The State must - 
          (A) by not later than January 1, 1989, specify those training
        and competency evaluation programs, and those competency
        evaluation programs, that the State approves for purposes of
        subsection (b)(5) of this section and that meet the
        requirements established under subsection (f)(2) of this
        section, and
          (B) by not later than January 1, 1990, provide for the review
        and reapproval of such programs, at a frequency and using a
        methodology consistent with the requirements established under
        subsection (f)(2)(A)(iii) of this section.

      The failure of the Secretary to establish requirements under
      subsection (f)(2) of this section shall not relieve any State of
      its responsibility under this paragraph.
      (2) Nurse aide registry
        (A) In general
          By not later than January 1, 1989, the State shall establish
        and maintain a registry of all individuals who have
        satisfactorily completed a nurse aide training and competency
        evaluation program, or a nurse aide competency evaluation
        program, approved under paragraph (1) in the State, or any
        individual described in subsection (f)(2)(B)(ii) of this
        section or in subparagraph (B), (C), or (D) of section
        6901(b)(4) of the Omnibus Budget Reconciliation Act of 1989.
        (B) Information in registry
          The registry under subparagraph (A) shall provide (in
        accordance with regulations of the Secretary) for the inclusion
        of specific documented findings by a State under subsection
        (g)(1)(C) of this section of resident neglect or abuse or
        misappropriation of resident property involving an individual
        listed in the registry, as well as any brief statement of the
        individual disputing the findings. The State shall make
        available to the public information in the registry. In the
        case of inquiries to the registry concerning an individual
        listed in the registry, any information disclosed concerning
        such a finding shall also include disclosure of any such
        statement in the registry relating to the finding or a clear
        and accurate summary of such a statement.
        (C) Prohibition against charges
          A State may not impose any charges on a nurse aide relating
        to the registry established and maintained under subparagraph
        (A).
      (3) State appeals process for transfers and discharges
        The State, for transfers and discharges from nursing facilities
      effected on or after October 1, 1989, must provide for a fair
      mechanism, meeting the guidelines established under subsection
      (f)(3) of this section, for hearing appeals on transfers and
      discharges of residents of such facilities; but the failure of
      the Secretary to establish such guidelines under such subsection
      shall not relieve any State of its responsibility under this
      paragraph.
      (4) Nursing facility administrator standards
        By not later than July 1, 1989, the State must have implemented
      and enforced the nursing facility administrator standards
      developed under subsection (f)(4) of this section respecting the
      qualification of administrators of nursing facilities.
      (5) Specification of resident assessment instrument
        Effective July 1, 1990, the State shall specify the instrument
      to be used by nursing facilities in the State in complying with
      the requirement of subsection (b)(3)(A)(iii) of this section.
      Such instrument shall be - 
          (A) one of the instruments designated under subsection
        (f)(6)(B) of this section, or
          (B) an instrument which the Secretary has approved as being
        consistent with the minimum data set of core elements, common
        definitions, and utilization guidelines specified by the
        Secretary under subsection (f)(6)(A) of this section.
      (6) Notice of medicaid rights
        Each State, as a condition of approval of its plan under this
      subchapter, effective April 1, 1988, must develop (and
      periodically update) a written notice of the rights and
      obligations of residents of nursing facilities (and spouses of
      such residents) under this subchapter.
      (7) State requirements for preadmission screening and resident
        review
        (A) Preadmission screening
          (i) In general
            Effective January 1, 1989, the State must have in effect a
          preadmission screening program, for making determinations
          (using any criteria developed under subsection (f)(8) of this
          section) described in subsection (b)(3)(F) of this section
          for mentally ill and mentally retarded individuals (as
          defined in subparagraph (G)) who are admitted to nursing
          facilities on or after January 1, 1989. The failure of the
          Secretary to develop minimum criteria under subsection (f)(8)
          of this section shall not relieve any State of its
          responsibility to have a preadmission screening program under
          this subparagraph or to perform resident reviews under
          subparagraph (B).
          (ii) Clarification with respect to certain readmissions
            The preadmission screening program under clause (i) need
          not provide for determinations in the case of the readmission
          to a nursing facility of an individual who, after being
          admitted to the nursing facility, was transferred for care in
          a hospital.
          (iii) Exception for certain hospital discharges
            The preadmission screening program under clause (i) shall
          not apply to the admission to a nursing facility of an
          individual - 
              (I) who is admitted to the facility directly from a
            hospital after receiving acute inpatient care at the
            hospital,
              (II) who requires nursing facility services for the
            condition for which the individual received care in the
            hospital, and
              (III) whose attending physician has certified, before
            admission to the facility, that the individual is likely to
            require less than 30 days of nursing facility services.
        (B) State requirement for resident review
          (i) For mentally ill residents
            As of April 1, 1990, in the case of each resident of a
          nursing facility who is mentally ill, the State mental health
          authority must review and determine (using any criteria
          developed under subsection (f)(8) of this section and based
          on an independent physical and mental evaluation performed by
          a person or entity other than the State mental health
          authority) - 
              (I) whether or not the resident, because of the
            resident's physical and mental condition, requires the
            level of services provided by a nursing facility or
            requires the level of services of an inpatient psychiatric
            hospital for individuals under age 21 (as described in
            section 1396d(h) of this title) or of an institution for
            mental diseases providing medical assistance to individuals
            65 years of age or older; and
              (II) whether or not the resident requires specialized
            services for mental illness.
          (ii) For mentally retarded residents
            As of April 1, 1990, in the case of each resident of a
          nursing facility who is mentally retarded, the State mental
          retardation or developmental disability authority must review
          and determine (using any criteria developed under subsection
          (f)(8) of this section) - 
              (I) whether or not the resident, because of the
            resident's physical and mental condition, requires the
            level of services provided by a nursing facility or
            requires the level of services of an intermediate care
            facility described under section 1396d(d) of this title;
            and
              (II) whether or not the resident requires specialized
            services for mental retardation.
          (iii) Review required upon change in resident's condition
            A review and determination under clause (i) or (ii) must be
          conducted promptly after a nursing facility has notified the
          State mental health authority or State mental retardation or
          developmental disability authority, as applicable, under
          subsection (b)(3)(E) of this section with respect to a
          mentally ill or mentally retarded resident, that there has
          been a significant change in the resident's physical or
          mental condition.
          (iv) Prohibition of delegation
            A State mental health authority, a State mental retardation
          or developmental disability authority, and a State may not
          delegate (by subcontract or otherwise) their responsibilities
          under this subparagraph to a nursing facility (or to an
          entity that has a direct or indirect affiliation or
          relationship with such a facility).
        (C) Response to preadmission screening and resident review
          As of April 1, 1990, the State must meet the following
        requirements:
          (i) Long-term residents not requiring nursing facility
            services, but requiring specialized services
            In the case of a resident who is determined, under
          subparagraph (B), not to require the level of services
          provided by a nursing facility, but to require specialized
          services for mental illness or mental retardation, and who
          has continuously resided in a nursing facility for at least
          30 months before the date of the determination, the State
          must, in consultation with the resident's family or legal
          representative and care-givers - 
              (I) inform the resident of the institutional and
            noninstitutional alternatives covered under the State plan
            for the resident,
              (II) offer the resident the choice of remaining in the
            facility or of receiving covered services in an alternative
            appropriate institutional or noninstitutional setting,
              (III) clarify the effect on eligibility for services
            under the State plan if the resident chooses to leave the
            facility (including its effect on readmission to the
            facility), and
              (IV) regardless of the resident's choice, provide for (or
            arrange for the provision of) such specialized services for
            the mental illness or mental retardation.

          A State shall not be denied payment under this subchapter for
          nursing facility services for a resident described in this
          clause because the resident does not require the level of
          services provided by such a facility, if the resident chooses
          to remain in such a facility.
          (ii) Other residents not requiring nursing facility services,
            but requiring specialized services
            In the case of a resident who is determined, under
          subparagraph (B), not to require the level of services
          provided by a nursing facility, but to require specialized
          services for mental illness or mental retardation, and who
          has not continuously resided in a nursing facility for at
          least 30 months before the date of the determination, the
          State must, in consultation with the resident's family or
          legal representative and care-givers - 
              (I) arrange for the safe and orderly discharge of the
            resident from the facility, consistent with the
            requirements of subsection (c)(2) of this section,
              (II) prepare and orient the resident for such discharge,
            and
              (III) provide for (or arrange for the provision of) such
            specialized services for the mental illness or mental
            retardation.
          (iii) Residents not requiring nursing facility services and
            not requiring specialized services
            In the case of a resident who is determined, under
          subparagraph (B), not to require the level of services
          provided by a nursing facility and not to require specialized
          services for mental illness or mental retardation, the State
          must - 
              (I) arrange for the safe and orderly discharge of the
            resident from the facility, consistent with the
            requirements of subsection (c)(2) of this section, and
              (II) prepare and orient the resident for such discharge.
          (iv) Annual report
            Each State shall report to the Secretary annually
          concerning the number and disposition of residents described
          in each of clauses (ii) and (iii).
        (D) Denial of payment
          (i) For failure to conduct preadmission screening or review
            No payment may be made under section 1396b(a) of this title
          with respect to nursing facility services furnished to an
          individual for whom a determination is required under
          subsection (b)(3)(F) of this section or subparagraph (B) but
          for whom the determination is not made.
          (ii) For certain residents not requiring nursing facility
            level of services
            No payment may be made under section 1396b(a) of this title
          with respect to nursing facility services furnished to an
          individual (other than an individual described in
          subparagraph (C)(i)) who does not require the level of
          services provided by a nursing facility.
        (E) Permitting alternative disposition plans
          With respect to residents of a nursing facility who are
        mentally retarded or mentally ill and who are determined under
        subparagraph (B) not to require the level of services of such a
        facility, but who require specialized services for mental
        illness or mental retardation, a State and the nursing facility
        shall be considered to be in compliance with the requirements
        of subparagraphs (A) through (C) of this paragraph if, before
        April 1, 1989, the State and the Secretary have entered into an
        agreement relating to the disposition of such residents of the
        facility and the State is in compliance with such agreement.
        Such an agreement may provide for the disposition of the
        residents after the date specified in subparagraph (C). The
        State may revise such an agreement, subject to the approval of
        the Secretary, before October 1, 1991, but only if, under the
        revised agreement, all residents subject to the agreement who
        do not require the level of services of such a facility are
        discharged from the facility by not later than April 1, 1994.
        (F) Appeals procedures
          Each State, as a condition of approval of its plan under this
        subchapter, effective January 1, 1989, must have in effect an
        appeals process for individuals adversely affected by
        determinations under subparagraph (A) or (B).
        (G) Definitions
          In this paragraph and in subsection (b)(3)(F) of this
        section:
            (i) An individual is considered to be "mentally ill" if the
          individual has a serious mental illness (as defined by the
          Secretary in consultation with the National Institute of
          Mental Health) and does not have a primary diagnosis of
          dementia (including Alzheimer's disease or a related
          disorder) or a diagnosis (other than a primary diagnosis) of
          dementia and a primary diagnosis that is not a serious mental
          illness.
            (ii) An individual is considered to be "mentally retarded"
          if the individual is mentally retarded or a person with a
          related condition (as described in section 1396d(d) of this
          title).
            (iii) The term "specialized services" has the meaning given
          such term by the Secretary in regulations, but does not
          include, in the case of a resident of a nursing facility,
          services within the scope of services which the facility must
          provide or arrange for its residents under subsection (b)(4)
          of this section.
    (f) Responsibilities of Secretary relating to nursing facility
      requirements
      (1) General responsibility
        It is the duty and responsibility of the Secretary to assure
      that requirements which govern the provision of care in nursing
      facilities under State plans approved under this subchapter, and
      the enforcement of such requirements, are adequate to protect the
      health, safety, welfare, and rights of residents and to promote
      the effective and efficient use of public moneys.
      (2) Requirements for nurse aide training and competency
        evaluation programs and for nurse aide competency evaluation
        programs
        (A) In general
          For purposes of subsections (b)(5) and (e)(1)(A) of this
        section, the Secretary shall establish, by not later than
        September 1, 1988 - 
            (i) requirements for the approval of nurse aide training
          and competency evaluation programs, including requirements
          relating to (I) the areas to be covered in such a program
          (including at least basic nursing skills, personal care
          skills, recognition of mental health and social service
          needs, care of cognitively impaired residents, basic
          restorative services, and residents' rights) and content of
          the curriculum, (II) minimum hours of initial and ongoing
          training and retraining (including not less than 75 hours in
          the case of initial training), (III) qualifications of
          instructors, and (IV) procedures for determination of
          competency;
            (ii) requirements for the approval of nurse aide competency
          evaluation programs, including requirement relating to the
          areas to be covered in such a program, including at least
          basic nursing skills, personal care skills, recognition of
          mental health and social service needs, care of cognitively
          impaired residents, basic restorative services, and
          residents' rights, and procedures for determination of
          competency;
            (iii) requirements respecting the minimum frequency and
          methodology to be used by a State in reviewing such programs'
          compliance with the requirements for such programs; and
            (iv) requirements, under both such programs, that - 
              (I) provide procedures for determining competency that
            permit a nurse aide, at the nurse aide's option, to
            establish competency through procedures or methods other
            than the passing of a written examination and to have the
            competency evaluation conducted at the nursing facility at
            which the aide is (or will be) employed (unless the
            facility is described in subparagraph (B)(iii)(I)),
              (II) prohibit the imposition on a nurse aide who is
            employed by (or who has received an offer of employment
            from) a facility on the date on which the aide begins
            either such program of any charges (including any charges
            for textbooks and other required course materials and any
            charges for the competency evaluation) for either such
            program, and
              (III) in the case of a nurse aide not described in
            subclause (II) who is employed by (or who has received an
            offer of employment from) a facility not later than 12
            months after completing either such program, the State
            shall provide for the reimbursement of costs incurred in
            completing such program on a prorata basis during the
            period in which the nurse aide is so employed.
        (B) Approval of certain programs
          Such requirements - 
            (i) may permit approval of programs offered by or in
          facilities, as well as outside facilities (including employee
          organizations), and of programs in effect on December 22,
          1987;
            (ii) shall permit a State to find that an individual who
          has completed (before July 1, 1989) a nurse aide training and
          competency evaluation program shall be deemed to have
          completed such a program approved under subsection (b)(5) of
          this section if the State determines that, at the time the
          program was offered, the program met the requirements for
          approval under such paragraph; and
            (iii) subject to subparagraphs (C) and (D), shall prohibit
          approval of such a program - 
              (I) offered by or in a nursing facility which, within the
            previous 2 years - 
                (a) has operated under a waiver under subsection
              (b)(4)(C)(ii) of this section that was granted on the
              basis of a demonstration that the facility is unable to
              provide the nursing care required under subsection
              (b)(4)(C)(i) of this section for a period in excess of 48
              hours during a week;
                (b) has been subject to an extended (or partial
              extended) survey under section 1395i-3(g)(2)(B)(i) of
              this title or subsection (g)(2)(B)(i) of this section; or
                (c) has been assessed a civil money penalty described
              in section 1395i-3(h)(2)(B)(ii) of this title or
              subsection (h)(2)(A)(ii) of this section of not less than
              $5,000, or has been subject to a remedy described in
              subsection (h)(1)(B)(i) of this section, clauses )3(!
              (i), (iii), or (iv) of subsection (h)(2)(A) of this
              section, clauses )3(! (i) or (iii) of section
              1395i-3(h)(2)(B) of this title, or section 1395i-3(h)(4)
              of this title, or

              (II) offered by or in a nursing facility unless the State
            makes the determination, upon an individual's completion of
            the program, that the individual is competent to provide
            nursing and nursing-related services in nursing facilities.

          A State may not delegate (through subcontract or otherwise)
          its responsibility under clause (iii)(II) to the nursing
          facility.
        (C) Waiver authorized
          Clause (iii)(I) of subparagraph (B) shall not apply to a
        program offered in (but not by) a nursing facility (or skilled
        nursing facility for purposes of subchapter XVIII of this
        chapter) in a State if the State - 
            (i) determines that there is no other such program offered
          within a reasonable distance of the facility,
            (ii) assures, through an oversight effort, that an adequate
          environment exists for operating the program in the facility,
          and
            (iii) provides notice of such determination and assurances
          to the State long-term care ombudsman.
        (D) Waiver of disapproval of nurse-aide training programs
          Upon application of a nursing facility, the Secretary may
        waive the application of subparagraph (B)(iii)(I)(c) if the
        imposition of the civil monetary penalty was not related to the
        quality of care provided to residents of the facility. Nothing
        in this subparagraph shall be construed as eliminating any
        requirement upon a facility to pay a civil monetary penalty
        described in the preceding sentence.
      (3) Federal guidelines for State appeals process for transfers
        and discharges
        For purposes of subsections (c)(2)(B)(iii) and (e)(3) of this
      section, by not later than October 1, 1988, the Secretary shall
      establish guidelines for minimum standards which State appeals
      processes under subsection (e)(3) of this section must meet to
      provide a fair mechanism for hearing appeals on transfers and
      discharges of residents from nursing facilities.
      (4) Secretarial standards qualification of administrators
        For purposes of subsections (d)(1)(C) and (e)(4) of this
      section, the Secretary shall develop, by not later than March 1,
      1988, standards to be applied in assuring the qualifications of
      administrators of nursing facilities.
      (5) Criteria for administration
        The Secretary shall establish criteria for assessing a nursing
      facility's compliance with the requirement of subsection (d)(1)
      of this section with respect to - 
          (A) its governing body and management,
          (B) agreements with hospitals regarding transfers of
        residents to and from the hospitals and to and from other
        nursing facilities,
          (C) disaster preparedness,
          (D) direction of medical care by a physician,
          (E) laboratory and radiological services,
          (F) clinical records, and
          (G) resident and advocate participation.
      (6) Specification of resident assessment data set and instruments
        The Secretary shall - 
          (A) not later than January 1, 1989, specify a minimum data
        set of core elements and common definitions for use by nursing
        facilities in conducting the assessments required under
        subsection (b)(3) of this section, and establish guidelines for
        utilization of the data set; and
          (B) by not later than April 1, 1990, designate one or more
        instruments which are consistent with the specification made
        under subparagraph (A) and which a State may specify under
        subsection (e)(5)(A) of this section for use by nursing
        facilities in complying with the requirements of subsection
        (b)(3)(A)(iii) of this section.
      (7) List of items and services furnished in nursing facilities
        not chargeable to the personal funds of a resident
        (A) Regulations required
          Pursuant to the requirement of section 21(b) of the
        Medicare-Medicaid Anti-Fraud and Abuse Amendments of 1977, the
        Secretary shall issue regulations, on or before the first day
        of the seventh month to begin after December 22, 1987, that
        define those costs which may be charged to the personal funds
        of residents in nursing facilities who are individuals
        receiving medical assistance with respect to nursing facility
        services under this subchapter and those costs which are to be
        included in the payment amount under this subchapter for
        nursing facility services.
        (B) Rule if failure to publish regulations
          If the Secretary does not issue the regulations under
        subparagraph (A) on or before the date required in that
        subparagraph, in the case of a resident of a nursing facility
        who is eligible to receive benefits for nursing facility
        services under this subchapter, for purposes of section
        1396a(a)(28)(B) of this title, the Secretary shall be deemed to
        have promulgated regulations under this paragraph which provide
        that the costs which may not be charged to the personal funds
        of such resident (and for which payment is considered to be
        made under this subchapter) include, at a minimum, the costs
        for routine personal hygiene items and services furnished by
        the facility.
      (8) Federal minimum criteria and monitoring for preadmission
        screening and resident review
        (A) Minimum criteria
          The Secretary shall develop, by not later than October 1,
        1988, minimum criteria for States to use in making
        determinations under subsections (b)(3)(F) and (e)(7)(B) of
        this section and in permitting individuals adversely affected
        to appeal such determinations, and shall notify the States of
        such criteria.
        (B) Monitoring compliance
          The Secretary shall review, in a sufficient number of cases
        to allow reasonable inferences, each State's compliance with
        the requirements of subsection (e)(7)(C)(ii) of this section
        (relating to discharge and placement for active treatment of
        certain residents).
      (9) Criteria for monitoring State waivers
        The Secretary shall develop, by not later than October 1, 1988,
      criteria and procedures for monitoring State performances in
      granting waivers pursuant to subsection (b)(4)(C)(ii) of this
      section.
    (g) Survey and certification process
      (1) State and Federal responsibility
        (A) In general
          Under each State plan under this subchapter, the State shall
        be responsible for certifying, in accordance with surveys
        conducted under paragraph (2), the compliance of nursing
        facilities (other than facilities of the State) with the
        requirements of subsections (b), (c), and (d) of this section.
        The Secretary shall be responsible for certifying, in
        accordance with surveys conducted under paragraph (2), the
        compliance of State nursing facilities with the requirements of
        such subsections.
        (B) Educational program
          Each State shall conduct periodic educational programs for
        the staff and residents (and their representatives) of nursing
        facilities in order to present current regulations, procedures,
        and policies under this section.
        (C) Investigation of allegations of resident neglect and abuse
          and misappropriation of resident property
          The State shall provide, through the agency responsible for
        surveys and certification of nursing facilities under this
        subsection, for a process for the receipt and timely review and
        investigation of allegations of neglect and abuse and
        misappropriation of resident property by a nurse aide of a
        resident in a nursing facility or by another individual used by
        the facility in providing services to such a resident. The
        State shall, after notice to the individual involved and a
        reasonable opportunity for a hearing for the individual to
        rebut allegations, make a finding as to the accuracy of the
        allegations. If the State finds that a nurse aide has neglected
        or abused a resident or misappropriated resident property in a
        facility, the State shall notify the nurse aide and the
        registry of such finding. If the State finds that any other
        individual used by the facility has neglected or abused a
        resident or misappropriated resident property in a facility,
        the State shall notify the appropriate licensure authority. A
        State shall not make a finding that an individual has neglected
        a resident if the individual demonstrates that such neglect was
        caused by factors beyond the control of the individual.
        (D) Removal of name from nurse aide registry
          (i) In general
            In the case of a finding of neglect under subparagraph (C),
          the State shall establish a procedure to permit a nurse aide
          to petition the State to have his or her name removed from
          the registry upon a determination by the State that - 
              (I) the employment and personal history of the nurse aide
            does not reflect a pattern of abusive behavior or neglect;
            and
              (II) the neglect involved in the original finding was a
            singular occurrence.
          (ii) Timing of determination
            In no case shall a determination on a petition submitted
          under clause (i) be made prior to the expiration of the
          1-year period beginning on the date on which the name of the
          petitioner was added to the registry under subparagraph (C).
        (E) Construction
          The failure of the Secretary to issue regulations to carry
        out this subsection shall not relieve a State of its
        responsibility under this subsection.
      (2) Surveys
        (A) Annual standard survey
          (i) In general
            Each nursing facility shall be subject to a standard
          survey, to be conducted without any prior notice to the
          facility. Any individual who notifies (or causes to be
          notified) a nursing facility of the time or date on which
          such a survey is scheduled to be conducted is subject to a
          civil money penalty of not to exceed $2,000. The provisions
          of section 1320a-7a of this title (other than subsections (a)
          and (b)) shall apply to a civil money penalty under the
          previous sentence in the same manner as such provisions apply
          to a penalty or proceeding under section 1320a-7a(a) of this
          title. The Secretary shall review each State's procedures for
          scheduling and conduct of standard surveys to assure that the
          State has taken all reasonable steps to avoid giving notice
          of such a survey through the scheduling procedures and the
          conduct of the surveys themselves.
          (ii) Contents
            Each standard survey shall include, for a case-mix
          stratified sample of residents - 
              (I) a survey of the quality of care furnished, as
            measured by indicators of medical, nursing, and
            rehabilitative care, dietary and nutrition services,
            activities and social participation, and sanitation,
            infection control, and the physical environment,
              (II) written plans of care provided under subsection
            (b)(2) of this section and an audit of the residents'
            assessments under subsection (b)(3) of this section to
            determine the accuracy of such assessments and the adequacy
            of such plans of care, and
              (III) a review of compliance with residents' rights under
            subsection (c) of this section.
          (iii) Frequency
            (I) In general
              Each nursing facility shall be subject to a standard
            survey not later than 15 months after the date of the
            previous standard survey conducted under this subparagraph.
            The statewide average interval between standard surveys of
            a nursing facility shall not exceed 12 months.
            (II) Special surveys
              If not otherwise conducted under subclause (I), a
            standard survey (or an abbreviated standard survey) may be
            conducted within 2 months of any change of ownership,
            administration, management of a nursing facility, or
            director of nursing in order to determine whether the
            change has resulted in any decline in the quality of care
            furnished in the facility.
        (B) Extended surveys
          (i) In general
            Each nursing facility which is found, under a standard
          survey, to have provided substandard quality of care shall be
          subject to an extended survey. Any other facility may, at the
          Secretary's or State's discretion, be subject to such an
          extended survey (or a partial extended survey).
          (ii) Timing
            The extended survey shall be conducted immediately after
          the standard survey (or, if not practicable, not later than 2
          weeks after the date of completion of the standard survey).
          (iii) Contents
            In such an extended survey, the survey team shall review
          and identify the policies and procedures which produced such
          substandard quality of care and shall determine whether the
          facility has complied with all the requirements described in
          subsections (b), (c), and (d) of this section. Such review
          shall include an expansion of the size of the sample of
          residents' assessments reviewed and a review of the staffing,
          of in-service training, and, if appropriate, of contracts
          with consultants.
          (iv) Construction
            Nothing in this paragraph shall be construed as requiring
          an extended or partial extended survey as a prerequisite to
          imposing a sanction against a facility under subsection (h)
          of this section on the basis of findings in a standard
          survey.
        (C) Survey protocol
          Standard and extended surveys shall be conducted - 
            (i) based upon a protocol which the Secretary has
          developed, tested, and validated by not later than January 1,
          1990, and
            (ii) by individuals, of a survey team, who meet such
          minimum qualifications as the Secretary establishes by not
          later than such date.

        The failure of the Secretary to develop, test, or validate such
        protocols or to establish such minimum qualifications shall not
        relieve any State of its responsibility (or the Secretary of
        the Secretary's responsibility) to conduct surveys under this
        subsection.
        (D) Consistency of surveys
          Each State shall implement programs to measure and reduce
        inconsistency in the application of survey results among
        surveyors.
        (E) Survey teams
          (i) In general
            Surveys under this subsection shall be conducted by a
          multidisciplinary team of professionals (including a
          registered professional nurse).
          (ii) Prohibition of conflicts of interest
            A State may not use as a member of a survey team under this
          subsection an individual who is serving (or has served within
          the previous 2 years) as a member of the staff of, or as a
          consultant to, the facility surveyed respecting compliance
          with the requirements of subsections (b), (c), and (d) of
          this section, or who has a personal or familial financial
          interest in the facility being surveyed.
          (iii) Training
            The Secretary shall provide for the comprehensive training
          of State and Federal surveyors in the conduct of standard and
          extended surveys under this subsection, including the
          auditing of resident assessments and plans of care. No
          individual shall serve as a member of a survey team unless
          the individual has successfully completed a training and
          testing program in survey and certification techniques that
          has been approved by the Secretary.
      (3) Validation surveys
        (A) In general
          The Secretary shall conduct onsite surveys of a
        representative sample of nursing facilities in each State,
        within 2 months of the date of surveys conducted under
        paragraph (2) by the State, in a sufficient number to allow
        inferences about the adequacies of each State's surveys
        conducted under paragraph (2). In conducting such surveys, the
        Secretary shall use the same survey protocols as the State is
        required to use under paragraph (2). If the State has
        determined that an individual nursing facility meets the
        requirements of subsections (b), (c), and (d) of this section,
        but the Secretary determines that the facility does not meet
        such requirements, the Secretary's determination as to the
        facility's noncompliance with such requirements is binding and
        supersedes that of the State survey.
        (B) Scope
          With respect to each State, the Secretary shall conduct
        surveys under subparagraph (A) each year with respect to at
        least 5 percent of the number of nursing facilities surveyed by
        the State in the year, but in no case less than 5 nursing
        facilities in the State.
        (C) Reduction in administrative costs for substandard
          performance
          If the Secretary finds, on the basis of such surveys, that a
        State has failed to perform surveys as required under paragraph
        (2) or that a State's survey and certification performance
        otherwise is not adequate, the Secretary may provide for the
        training of survey teams in the State and shall provide for a
        reduction of the payment otherwise made to the State under
        section 1396b(a)(2)(D) of this title with respect to a quarter
        equal to 33 percent multiplied by a fraction, the denominator
        of which is equal to the total number of residents in nursing
        facilities surveyed by the Secretary that quarter and the
        numerator of which is equal to the total number of residents in
        nursing facilities which were found pursuant to such surveys to
        be not in compliance with any of the requirements of
        subsections (b), (c), and (d) of this section. A State that is
        dissatisfied with the Secretary's findings under this
        subparagraph may obtain reconsideration and review of the
        findings under section 1316 of this title in the same manner as
        a State may seek reconsideration and review under that section
        of the Secretary's determination under section 1316(a)(1) of
        this title.
        (D) Special surveys of compliance
          Where the Secretary has reason to question the compliance of
        a nursing facility with any of the requirements of subsections
        (b), (c), and (d) of this section, the Secretary may conduct a
        survey of the facility and, on the basis of that survey, make
        independent and binding determinations concerning the extent to
        which the nursing facility meets such requirements.
      (4) Investigation of complaints and monitoring nursing facility
        compliance
        Each State shall maintain procedures and adequate staff to - 
          (A) investigate complaints of violations of requirements by
        nursing facilities, and
          (B) monitor, on-site, on a regular, as needed basis, a
        nursing facility's compliance with the requirements of
        subsections (b), (c), and (d) of this section, if - 
            (i) the facility has been found not to be in compliance
          with such requirements and is in the process of correcting
          deficiencies to achieve such compliance;
            (ii) the facility was previously found not to be in
          compliance with such requirements, has corrected deficiencies
          to achieve such compliance, and verification of continued
          compliance is indicated; or
            (iii) the State has reason to question the compliance of
          the facility with such requirements.

      A State may maintain and utilize a specialized team (including an
      attorney, an auditor, and appropriate health care professionals)
      for the purpose of identifying, surveying, gathering and
      preserving evidence, and carrying out appropriate enforcement
      actions against substandard nursing facilities.
      (5) Disclosure of results of inspections and activities
        (A) Public information
          Each State, and the Secretary, shall make available to the
        public - 
            (i) information respecting all surveys and certifications
          made respecting nursing facilities, including statements of
          deficiencies, within 14 calendar days after such information
          is made available to those facilities, and approved plans of
          correction,
            (ii) copies of cost reports of such facilities filed under
          this subchapter or under subchapter XVIII of this chapter,
            (iii) copies of statements of ownership under section
          1320a-3 of this title, and
            (iv) information disclosed under section 1320a-5 of this
          title.
        (B) Notice to ombudsman
          Each State shall notify the State long-term care ombudsman
        (established under title III or VII of the Older Americans Act
        of 1965 [42 U.S.C. 3021 et seq., 3058 et seq.] in accordance
        with section 712 of the Act [42 U.S.C. 3058g]) of the State's
        findings of noncompliance with any of the requirements of
        subsections (b), (c), and (d) of this section, or of any
        adverse action taken against a nursing facility under
        paragraphs )4(! (1), (2), or (3) of subsection (h) of this
        section, with respect to a nursing facility in the State.

        (C) Notice to physicians and nursing facility administrator
          licensing board
          If a State finds that a nursing facility has provided
        substandard quality of care, the State shall notify - 
            (i) the attending physician of each resident with respect
          to which such finding is made, and
            (ii) any State board responsible for the licensing of the
          nursing facility administrator of the facility.
        (D) Access to fraud control units
          Each State shall provide its State medicaid fraud and abuse
        control unit (established under section 1396b(q) of this title)
        with access to all information of the State agency responsible
        for surveys and certifications under this subsection.
    (h) Enforcement process
      (1) In general
        If a State finds, on the basis of a standard, extended, or
      partial extended survey under subsection (g)(2) of this section
      or otherwise, that a nursing facility no longer meets a
      requirement of subsection (b), (c), or (d) of this section, and
      further finds that the facility's deficiencies - 
          (A) immediately jeopardize the health or safety of its
        residents, the State shall take immediate action to remove the
        jeopardy and correct the deficiencies through the remedy
        specified in paragraph (2)(A)(iii), or terminate the facility's
        participation under the State plan and may provide, in
        addition, for one or more of the other remedies described in
        paragraph (2); or
          (B) do not immediately jeopardize the health or safety of its
        residents, the State may - 
            (i) terminate the facility's participation under the State
          plan,
            (ii) provide for one or more of the remedies described in
          paragraph (2), or
            (iii) do both.

      Nothing in this paragraph shall be construed as restricting the
      remedies available to a State to remedy a nursing facility's
      deficiencies. If a State finds that a nursing facility meets the
      requirements of subsections (b), (c), and (d) of this section,
      but, as of a previous period, did not meet such requirements, the
      State may provide for a civil money penalty under paragraph
      (2)(A)(ii) for the days in which it finds that the facility was
      not in compliance with such requirements.
      (2) Specified remedies
        (A) Listing
          Except as provided in subparagraph (B)(ii), each State shall
        establish by law (whether statute or regulation) at least the
        following remedies:
            (i) Denial of payment under the State plan with respect to
          any individual admitted to the nursing facility involved
          after such notice to the public and to the facility as may be
          provided for by the State.
            (ii) A civil money penalty assessed and collected, with
          interest, for each day in which the facility is or was out of
          compliance with a requirement of subsection (b), (c), or (d)
          of this section. Funds collected by a State as a result of
          imposition of such a penalty (or as a result of the
          imposition by the State of a civil money penalty for
          activities described in subsections (b)(3)(B)(ii)(I),
          (b)(3)(B)(ii)(II), or (g)(2)(A)(i) of this section) shall be
          applied to the protection of the health or property of
          residents of nursing facilities that the State or the
          Secretary finds deficient, including payment for the costs of
          relocation of residents to other facilities, maintenance of
          operation of a facility pending correction of deficiencies or
          closure, and reimbursement of residents for personal funds
          lost.
            (iii) The appointment of temporary management to oversee
          the operation of the facility and to assure the health and
          safety of the facility's residents, where there is a need for
          temporary management while - 
              (I) there is an orderly closure of the facility, or
              (II) improvements are made in order to bring the facility
            into compliance with all the requirements of subsections
            (b), (c), and (d) of this section.

          The temporary management under this clause shall not be
          terminated under subclause (II) until the State has
          determined that the facility has the management capability to
          ensure continued compliance with all the requirements of
          subsections (b), (c), and (d) of this section.
            (iv) The authority, in the case of an emergency, to close
          the facility, to transfer residents in that facility to other
          facilities, or both.

        The State also shall specify criteria, as to when and how each
        of such remedies is to be applied, the amounts of any fines,
        and the severity of each of these remedies, to be used in the
        imposition of such remedies. Such criteria shall be designed so
        as to minimize the time between the identification of
        violations and final imposition of the remedies and shall
        provide for the imposition of incrementally more severe fines
        for repeated or uncorrected deficiencies. In addition, the
        State may provide for other specified remedies, such as
        directed plans of correction.
        (B) Deadline and guidance
          (i) Except as provided in clause (ii), as a condition for
        approval of a State plan for calendar quarters beginning on or
        after October 1, 1989, each State shall establish the remedies
        described in clauses (i) through (iv) of subparagraph (A) by
        not later than October 1, 1989. The Secretary shall provide,
        through regulations by not later than October 1, 1988, guidance
        to States in establishing such remedies; but the failure of the
        Secretary to provide such guidance shall not relieve a State of
        the responsibility for establishing such remedies.
          (ii) A State may establish alternative remedies (other than
        termination of participation) other than those described in
        clauses (i) through (iv) of subparagraph (A), if the State
        demonstrates to the Secretary's satisfaction that the
        alternative remedies are as effective in deterring
        noncompliance and correcting deficiencies as those described in
        subparagraph (A).
        (C) Assuring prompt compliance
          If a nursing facility has not complied with any of the
        requirements of subsections (b), (c), and (d) of this section,
        within 3 months after the date the facility is found to be out
        of compliance with such requirements, the State shall impose
        the remedy described in subparagraph (A)(i) for all individuals
        who are admitted to the facility after such date.
        (D) Repeated noncompliance
          In the case of a nursing facility which, on 3 consecutive
        standard surveys conducted under subsection (g)(2) of this
        section, has been found to have provided substandard quality of
        care, the State shall (regardless of what other remedies are
        provided) - 
            (i) impose the remedy described in subparagraph (A)(i), and
            (ii) monitor the facility under subsection (g)(4)(B) of
          this section,

        until the facility has demonstrated, to the satisfaction of the
        State, that it is in compliance with the requirements of
        subsections (b), (c), and (d) of this section, and that it will
        remain in compliance with such requirements.
        (E) Funding
          The reasonable expenditures of a State to provide for
        temporary management and other expenses associated with
        implementing the remedies described in clauses (iii) and (iv)
        of subparagraph (A) shall be considered, for purposes of
        section 1396b(a)(7) of this title, to be necessary for the
        proper and efficient administration of the State plan.
        (F) Incentives for high quality care
          In addition to the remedies specified in this paragraph, a
        State may establish a program to reward, through public
        recognition, incentive payments, or both, nursing facilities
        that provide the highest quality care to residents who are
        entitled to medical assistance under this subchapter. For
        purposes of section 1396b(a)(7) of this title, proper expenses
        incurred by a State in carrying out such a program shall be
        considered to be expenses necessary for the proper and
        efficient administration of the State plan under this
        subchapter.
      (3) Secretarial authority
        (A) For State nursing facilities
          With respect to a State nursing facility, the Secretary shall
        have the authority and duties of a State under this subsection,
        including the authority to impose remedies described in clauses
        (i), (ii), and (iii) of paragraph (2)(A).
        (B) Other nursing facilities
          With respect to any other nursing facility in a State, if the
        Secretary finds that a nursing facility no longer meets a
        requirement of subsection (b), (c), (d), or (e) of this
        section, and further finds that the facility's deficiencies - 
            (i) immediately jeopardize the health or safety of its
          residents, the Secretary shall take immediate action to
          remove the jeopardy and correct the deficiencies through the
          remedy specified in subparagraph (C)(iii), or terminate the
          facility's participation under the State plan and may
          provide, in addition, for one or more of the other remedies
          described in subparagraph (C); or
            (ii) do not immediately jeopardize the health or safety of
          its residents, the Secretary may impose any of the remedies
          described in subparagraph (C).

        Nothing in this subparagraph shall be construed as restricting
        the remedies available to the Secretary to remedy a nursing
        facility's deficiencies. If the Secretary finds that a nursing
        facility meets such requirements but, as of a previous period,
        did not meet such requirements, the Secretary may provide for a
        civil money penalty under subparagraph (C)(ii) for the days on
        which he finds that the facility was not in compliance with
        such requirements.
        (C) Specified remedies
          The Secretary may take the following actions with respect to
        a finding that a facility has not met an applicable
        requirement:
          (i) Denial of payment
            The Secretary may deny any further payments to the State
          for medical assistance furnished by the facility to all
          individuals in the facility or to individuals admitted to the
          facility after the effective date of the finding.
          (ii) Authority with respect to civil money penalties
            The Secretary may impose a civil money penalty in an amount
          not to exceed $10,000 for each day of noncompliance. The
          provisions of section 1320a-7a of this title (other than
          subsections (a) and (b)) shall apply to a civil money penalty
          under the previous sentence in the same manner as such
          provisions apply to a penalty or proceeding under section
          1320a-7a(a) of this title.
          (iii) Appointment of temporary management
            In consultation with the State, the Secretary may appoint
          temporary management to oversee the operation of the facility
          and to assure the health and safety of the facility's
          residents, where there is a need for temporary management
          while - 
              (I) there is an orderly closure of the facility, or
              (II) improvements are made in order to bring the facility
            into compliance with all the requirements of subsections
            (b), (c), and (d) of this section.

          The temporary management under this clause shall not be
          terminated under subclause (II) until the Secretary has
          determined that the facility has the management capability to
          ensure continued compliance with all the requirements of
          subsections (b), (c), and (d) of this section.

        The Secretary shall specify criteria, as to when and how each
        of such remedies is to be applied, the amounts of any fines,
        and the severity of each of these remedies, to be used in the
        imposition of such remedies. Such criteria shall be designed so
        as to minimize the time between the identification of
        violations and final imposition of the remedies and shall
        provide for the imposition of incrementally more severe fines
        for repeated or uncorrected deficiencies. In addition, the
        Secretary may provide for other specified remedies, such as
        directed plans of correction.
        (D) Continuation of payments pending remediation
          The Secretary may continue payments, over a period of not
        longer than 6 months after the effective date of the findings,
        under this subchapter with respect to a nursing facility not in
        compliance with a requirement of subsection (b), (c), or (d) of
        this section, if - 
            (i) the State survey agency finds that it is more
          appropriate to take alternative action to assure compliance
          of the facility with the requirements than to terminate the
          certification of the facility, and
            (ii) the State has submitted a plan and timetable for
          corrective action to the Secretary for approval and the
          Secretary approves the plan of corrective action.

        The Secretary shall establish guidelines for approval of
        corrective actions requested by States under this subparagraph.
      (4) Effective period of denial of payment
        A finding to deny payment under this subsection shall terminate
      when the State or Secretary (or both, as the case may be) finds
      that the facility is in substantial compliance with all the
      requirements of subsections (b), (c), and (d) of this section.
      (5) Immediate termination of participation for facility where
        State or Secretary finds noncompliance and immediate jeopardy
        If either the State or the Secretary finds that a nursing
      facility has not met a requirement of subsection (b), (c), or (d)
      of this section, and finds that the failure immediately
      jeopardizes the health or safety of its residents, the State or
      the Secretary, respectively )5(! shall notify the other of such
      finding, and the State or the Secretary, respectively, shall take
      immediate action to remove the jeopardy and correct the
      deficiencies through the remedy specified in paragraph
      (2)(A)(iii) or (3)(C)(iii), or terminate the facility's
      participation under the State plan. If the facility's
      participation in the State plan is terminated by either the State
      or the Secretary, the State shall provide for the safe and
      orderly transfer of the residents eligible under the State plan
      consistent with the requirements of subsection (c)(2) of this
      section.

      (6) Special rules where State and Secretary do not agree on
        finding of noncompliance
        (A) State finding of noncompliance and no Secretarial finding
          of noncompliance
          If the Secretary finds that a nursing facility has met all
        the requirements of subsections (b), (c), and (d) of this
        section, but a State finds that the facility has not met such
        requirements and the failure does not immediately jeopardize
        the health or safety of its residents, the State's findings
        shall control and the remedies imposed by the State shall be
        applied.
        (B) Secretarial finding of noncompliance and no State finding
          of noncompliance
          If the Secretary finds that a nursing facility has not met
        all the requirements of subsections (b), (c), and (d) of this
        section, and that the failure does not immediately jeopardize
        the health or safety of its residents, but the State has not
        made such a finding, the Secretary - 
            (i) may impose any remedies specified in paragraph (3)(C)
          with respect to the facility, and
            (ii) shall (pending any termination by the Secretary)
          permit continuation of payments in accordance with paragraph
          (3)(D).
      (7) Special rules for timing of termination of participation
        where remedies overlap
        If both the Secretary and the State find that a nursing
      facility has not met all the requirements of subsections (b),
      (c), and (d) of this section, and neither finds that the failure
      immediately jeopardizes the health or safety of its residents - 
          (A)(i) if both find that the facility's participation under
        the State plan should be terminated, the State's timing of any
        termination shall control so long as the termination date does
        not occur later than 6 months after the date of the finding to
        terminate;
          (ii) if the Secretary, but not the State, finds that the
        facility's participation under the State plan should be
        terminated, the Secretary shall (pending any termination by the
        Secretary) permit continuation of payments in accordance with
        paragraph (3)(D); or
          (iii) if the State, but not the Secretary, finds that the
        facility's participation under the State plan should be
        terminated, the State's decision to terminate, and timing of
        such termination, shall control; and
          (B)(i) if the Secretary or the State, but not both,
        establishes one or more remedies which are additional or
        alternative to the remedy of terminating the facility's
        participation under the State plan, such additional or
        alternative remedies shall also be applied, or
          (ii) if both the Secretary and the State establish one or
        more remedies which are additional or alternative to the remedy
        of terminating the facility's participation under the State
        plan, only the additional or alternative remedies of the
        Secretary shall apply.
      (8) Construction
        The remedies provided under this subsection are in addition to
      those otherwise available under State or Federal law and shall
      not be construed as limiting such other remedies, including any
      remedy available to an individual at common law. The remedies
      described in clauses (i), (iii), and (iv) of paragraph (2)(A) may
      be imposed during the pendency of any hearing. The provisions of
      this subsection shall apply to a nursing facility (or portion
      thereof) notwithstanding that the facility (or portion thereof)
      also is a skilled nursing facility for purposes of subchapter
      XVIII of this chapter.
      (9) Sharing of information
        Notwithstanding any other provision of law, all information
      concerning nursing facilities required by this section to be
      filed with the Secretary or a State agency shall be made
      available by such facilities to Federal or State employees for
      purposes consistent with the effective administration of programs
      established under this subchapter and subchapter XVIII of this
      chapter, including investigations by State medicaid fraud control
      units.
    (i) Construction
      Where requirements or obligations under this section are
    identical to those provided under section 1395i-3 of this title,
    the fulfillment of those requirements or obligations under section
    1395i-3 of this title shall be considered to be the fulfillment of
    the corresponding requirements or obligations under this section.



Previous [Notes]