What’s happening: Inappropriate practices have been identified in facility admission agreements related to debt collection practices.

• These agreements may include terms that aim to hold a third party personally liable for the resident’s nursing facility costs or to hold both residents and their caregivers personally liable for payment or unpaid bills if the resident’s Medicaid application is deemed inaccurate, untimely, or incomplete.
• Use AHCA’s Tool: Checklist on All REQUIRED Policies & Procedures to see if your admission policy meets regulations. (See page 8 for the section on admission policy requirements.)

Driving the news: CMS Administrator Chiquita Brooks-LaSure and Rohit Chopra, Director of Consumer Financial Protection Bureau, issued a letter to all nursing homes and debt collectors regarding debt collection practices.

• The focus behind the letter is to draw attention to the prohibited practice outlined in the Nursing Home Reform Act (NHRA) of nursing facilities requesting or requiring that a third party personally guarantee payment to the facility as a condition of a resident’s admission or continued stay in the facility.
• CMS reminds nursing facilities that violations of such requirements may be subject to enforcement action by state agencies and CMS.