CMS encourages states to use Medicaid payments to nursing homes to drive better health outcomes for residents, improve staffing 

August 24, 2022 – CMS issued an informational bulletin detailing actions that states can take using existing Medicaid authorities to drive better health outcomes for nursing home residents and improve staff pay, training, and retention efforts. The informational bulletin – issued by CMS’ Centers for Medicaid and CHIP Services (CMCS) – also provides examples of current state Medicaid initiatives to support this work. 

Earlier this year, President Biden announced a comprehensive set of reforms to improve the safety and quality of nursing home care, hold nursing homes accountable for the care they provide, and make the quality of care and facility ownership more transparent so potential residents and their loved ones can make informed decisions. As part of the implementation of these reforms, CMS is working to support state Medicaid agencies in ensuring the best care possible for beneficiaries living in nursing homes. 

To ensure nursing homes are adequately resourced and staffed, CMS is urging states to tie Medicaid payments to quality measures that will improve the safety and quality of care. 

In addition to this informational bulletin, CMS continues to encourage states strongly to achieve a more equitable balance between the share of spending and use of services and supports delivered in home and community-based settings relative to institutional care like nursing homes. As another key priority of the Biden-Harris Administration, CMS is committed to strengthening the availability of Medicaid-covered home and community-based services (HCBS) as an alternative to institutional care. As a result of the American Rescue Plan, states are planning to invest $25 billion to expand, enhance, and strengthen HCBS, the largest investment ever in HCBS. 

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