42 C.F.R. PART 442—STANDARDS FOR PAYMENT TO NURSING FACILITIES AND INTERMEDIATE CARE FACILITIES FOR THE MENTALLY RETARDED
Title 42 - Public Health
Authority: Sec. 1102 of the Social Security Act (42 U.S.C. 1302), unless otherwise noted.
Source: 43 FR 45233, Sept. 29, 1978, unless otherwise noted.
(a) This part states requirements for provider agreements for facility certification relating to the provision of services furnished by nursing facilities and intermediate care facilities for the mentally retarded. This part is based on the following sections of the Act:
Section 1902(a)(4), administrative methods for proper and efficient operation of the State plan; Section 1902(a)(27), provider agreements; Section 1902(a)(28), nursing facility standards; Section 1902(a)(33)(B), State survey agency functions; Section 1902(i), circumstances and procedures for denial of payment and termination of provider agreements in certain cases; Section 1905(c), definition of nursing facility; Section 1905(d), definition of intermediate care facility for the mentally retarded; Section 1905 (f), definition of nursing facility services; Section 1910, certification and approval of ICFs/MR and of RHCs; Section 1913, hospital providers of nursing facility services; Section 1919 (g) and (h), survey, certification and enforcement of nursing facilities; and Section 1922, correction and reduction plans for intermediate care facilities for the mentally retarded. (b) Section 431.610 of this subchapter contains requirements for designating the State licensing agency to survey these facilities and for certain survey agency responsibilities. [43 FR 45233, Sept. 29, 1978, as amended at 47 FR 31533, July 20, 1982; 59 FR 56235, Nov. 10, 1994] In this part— Facility refers to a nursing facility, and an intermediate care facility for the mentally retarded or persons with related conditions (ICF/MR). Facility, and any specific type of facility referred to, may include a distinct part of a facility as specified in §440.40 or §440.150 of this subchapter. Immediate jeopardy means a situation in which immediate corrective action is necessary because the provider's noncompliance with one or more requirements of participation or conditions of participation has caused, or is likely to cause, serious injury, harm, impairment, or death to an individual receiving care in a facility. New admission means the admission of a Medicaid recipient who has never been in the facility or, if previously admitted, had been discharged or had voluntarily left the facility. The term does not include the following: (a) Individuals who were in the facility before the effective date of denial of payment for new admissions, even if they become eligible for Medicaid after that date. (b) If the approved State plan includes payments for reserved beds, individuals who, after a temporary absence from the facility, are readmitted to beds reserved for them in accordance with §447.40(a) of this chapter. [43 FR 45233, Sept. 29, 1978, as amended at 51 FR 24491, July 3, 1986; 53 FR 1993, Jan. 25, 1988; 54 FR 5358, Feb. 2, 1989; 56 FR 48865, Sept. 26, 1991; 59 FR 56235, Nov. 10, 1994] A State plan must provide that requirements of this subpart are met. (a) Certification and recertification. Except as provided in paragraph (b) of this section, a Medicaid agency may not execute a provider agreement with a facility for nursing facility services nor make Medicaid payments to a facility for those services unless the Secretary or the State survey agency has certified the facility under this part to provide those services. (See §442.101 for certification by the Secretary or by the State survey agency). (b) Exception. The certification requirement of paragraph (a) of this section does not apply with respect to religious nonmedical institutions as defined in §440.170(b) of this chapter. (c) Conformance with certification condition. An agreement must be in accordance with the certification provisions set by the Secretary or the survey agency under subpart C of this part for ICFs/MR or subpart E of part 488 of this chapter for NFs. (d) Denial for good cause. (1) If the Medicaid agency has adequate documentation showing good cause, it may refuse to execute an agreement, or may cancel an agreement, with a certified facility. (2) A provider agreement is not a valid agreement for purposes of this part even though certified by the State survey agency, if the facility fails to meet the civil rights requirements set forth in 45 CFR parts 80, 84, and 90. [45 FR 22936, Apr. 4, 1980, as amended at 56 FR 48865, Sept. 26, 1991; 59 FR 56235, Nov. 10, 1994; 64 FR 67052, Nov. 30, 1999] The effective date of a provider agreement with an NF or ICF/MR is determined in accordance with the rules set forth in §431.108. [62 FR 43936, Aug. 18, 1997] (a) Assignment of agreement. When there is a change of ownership, the Medicaid agency must automatically assign the agreement to the new owner. (b) Conditions that apply to assigned agreements. An assigned agreement is subject to all applicable statutes and regulations and to the terms and conditions under which it was originally issued, including, but not limited to, the following: (1) Any existing plan of correction. (2) Any expiration date for ICFs/MR. (3) Compliance with applicable health and safety requirements. (4) Compliance with the ownership and financial interest disclosure requirements of §§455.104 and 455.105 of this chapter. (5) Compliance with civil rights requirements set forth in 45 CFR parts 80, 84, and 90. (6) Compliance with any additional requirements imposed by the Medicaid agency. [45 FR 22936, Apr. 4, 1980, as amended at 53 FR 20495, June 3, 1988; 59 FR 56235, Nov. 10, 1994] (a) Except as specified under §442.16, the duration of an agreement may not exceed 12 months. (b) The agreement must be for the same duration as the certification period set by the survey agency. However, if the Medicaid agency has adequate documentation showing good cause, it may make an agreement for less than this period. (c) FFP is available for services provided by a facility for up to 30 days after its agreement expires or terminates under the conditions specified in §441.11 of this subchapter. [43 FR 45233, Sept. 29, 1978, as amended at 47 FR 31532, July 20, 1982; 59 FR 56235, Nov. 10, 1994] A Medicaid agency may extend a provider agreement for a single period of up to 2 months beyond the original expiration date specified in the agreement if it receives written notice from the survey agency, before the expiration date of the agreement, that extension will not jeopardize the patients' health and safety, and— (a) Is needed to prevent irreparable harm to the facility or hardship to the recipients in the facility; or (b) Is needed because it is impracticable to determine, before the expiration date, whether the facility meets certification requirements. [43 FR 45233, Sept. 29, 1978, as amended at 52 FR 32551, Aug. 28, 1987; 53 FR 20495, June 3, 1988; 59 FR 56235, Nov. 10, 1994] (a) Under §§440.40(a) and 440.150 of this chapter, FFP is available in expenditures for NF and ICF/MR services only if the facility has been certified as meeting the requirements for Medicaid participation, as evidenced by a provider agreement executed under this part. An agreement is not valid evidence that a facility has met those requirements if CMS determines that— (1) The survey agency failed to apply the applicable requirements under subpart B of part 483 of this chapter for NFs or subpart I of part 483 of this chapter, which set forth the conditions of participation for ICFs/MR. (2) The survey agency failed to follow the rules and procedures for certification set forth in subpart C of this part, subpart E of part 488, and §431.610 of this subchapter; (3) The survey agency failed to perform any of the functions specified in §431.610(g) of this subchapter relating to evaluating and acting on information about the facility and inspecting the facility; (4) The agency failed to use the Federal standards, and the forms, methods and procedures prescribed by CMS as required under §431.610(f)(1) or §488.318(b) of this chapter, for determining the qualifications of providers; or (5) The survey agency failed to adhere to the following principles in determining compliance: (i) The survey process is the means to assess compliance with Federal health, safety and quality standards; (ii) The survey process uses resident outcomes as the primary means to establish the compliance status of facilities. Specifically, surveyors will directly observe the actual provision of care and services to residents, and the effects of that care, to assess whether the care provided meets the needs of individual residents; (iii) Surveyors are professionals who use their judgment, in concert with Federal forms and procedures, to determine compliance; (iv) Federal procedures are used by all surveyors to ensure uniform and consistent application and interpretation of Federal requirements; (v) Federal forms are used by all surveyors to ensure proper recording of findings and to document the basis for the findings. (6) The survey agency failed to assess in a systematic manner a facility's actual provision of care and services to residents and effects of that care on residents. (7) Required elements of the NF survey process fails to include all of the following: (i) An entrance conference; (ii) A resident-centered tour of facility; (iii) An in-depth review of a sample of residents including observation, interview and record review; (iv) Observation of the preparation and administration of drugs for a sample of residents; (v) Evaluation of a facility's meals, dining areas and eating assistance procedures; (vi) Formulation of a deficiency statement based on the incorporation of all appropriate findings onto the survey report form; (vii) An exit conference; and (viii) Follow-up surveys as appropriate. (8) The agreement's terms and conditions do not meet the requirements of this subpart. (b) The Administrator will make the determination under paragraph (a) of this section through onsite surveys, other Federal reviews, State certification records, or reports he may require from the Medicaid or survey agency. (c) If the Administrator disallows a State's claim for FFP because of a determination under paragraph (a) of this section, the State is entitled upon request to reconsideration of the disallowance under 45 CFR part 16. [43 FR 45233, Sept. 29, 1978, as amended at 51 FR 21558, June 13, 1986; 53 FR 20495, June 3, 1988; 53 FR 23101, June 17, 1988; 56 FR 48865, Sept. 26, 1991; 59 FR 56235, Nov. 10, 1994] (a) Definitions. As used in this section— Effective date of expiration means the date of expiration originally specified in the provider agreement, or the later date specified if the agreement is extended under §442.16; and Effective date of termination means a date earlier than the expiration date, set by the Medicaid agency when continuing participation until the expiration date is not justified, because the facility no longer meets the requirements for participation. (b) Scope, applicability, and effective date—(1) Scope. This section sets forth the extent of FFP in State Medicaid payments to an ICF/MR after its provider agreement has been terminated or has expired and not been renewed. (2) Applicability. (i) This section and §442.42 apply only when the Medicaid agency, of its own volition, terminates or does not a renew a provider agreement, and only when the survey agency certifies that there is no jeopardy to recipient health and safety. When the survey agency certifies that there is jeopardy to recipient health and safety, or when it fails to certify that there is no jeopardy, FFP ends on the effective date of termination or expiration. (ii) When the State acts under instructions from CMS, FFP ends on the date specified by CMS (CMS instructs the State to terminate the Medicaid provider agreement when CMS in validating a State survey agency certification, determines that an ICF/MR does not meet the requirements for participation.) (3) Effective date. This section and §442.42 apply to terminations or expirations that are effective on or after September 28, 1987. For terminations or nonrenewals that were effective before that date, FFP may continue for up to 120 days from September 28, 1987, or 12 months from the effective date of termination or nonrenewal, whichever is earlier. (c) Basic rules. (1) Except as provided in paragraphs (d) and (e) of this section, FFP in payments to an ICF/MR ends on the effective date of termination of the facility's provider agreement, or if the agreement is not terminated, on the effective date of expiration. (2) If State law, or a Federal or State court order or injunction, requires the agency to extend the provider agreement or continue payments to a facility after the dates specified in paragraph (d) of this section, FFP is not available in those payments. (d) Exception: Continuation of FFP after termination or expiration of provider agreement—(1) Conditions for continuation. FFP is available after the effective date of termination or expiration only if— (i) The evidentiary hearing required under §431.153 of this chapter is provided by the State agency after the effective date of termination or expiration (or, if begun before termination or expiration, is not completed until after that date); and (ii) Termination or nonrenewal action is based on a survey agency certification that there is no jeopardy to recipients' health and safety. (2) Extent of continuation. FFP is available only through the earlier of the following: (i) The date of issuance of an administrative hearing decision that upholds the agency's termination or nonrenewal action. (ii) The 120th day after the effective date of termination of the facility's provider agreement or, if the agreement is not terminated, the 120th day after the effective date of expiration. (If a hearing decision that upholds the facility is issued after the end of the 120-day period, when FFP has already been discontinued, the rules of §442.42 on retroactive agreements apply). (e) Applicability of §441.11. If FFP is continued during appeal under paragraph (d) of this section, the 30-day period provided by §441.11 of this chapter would not begin to run until issuance of a hearing decision that upholds the agency's termination or nonrenewal action. [52 FR 32551, Aug. 28, 1987, as amended at 56 FR 48865, Sept. 26, 1991; 59 FR 56236, Nov. 10, 1994] (a) Basic rule. Except as specified in paragraph (b) of this section, if an NF or ICF/MR prevails on appeal from termination or, in the case of an ICF/MR, nonrenewal of a provider agreement, and the State issues a retroactive agreement, FFP is available beginning with the retroactive effective date, which must be determined in accordance with §442.13. (b) Exception. This rule does not apply if CMS determines, under §442.30, that the agreement is not valid evidence that the facility meets the requirements for participation. This exclusion applies even if the State issues the new agreement as the result of an administrative hearing decision favorable to the facility or under a Federal or State court order. [52 FR 32551, Aug. 28, 1987, as amended at 59 FR 56236, Nov. 10, 1994] A State plan must provide that the requirements of this subpart and part 483 are met. [53 FR 20495, June 3, 1988] (a) This section states the requirements for obtaining notice of an ICF/MR's certification before a Medicaid agency executes a provider agreement under §442.12. (b) The agency must obtain notice of certification from the Secretary for an ICF/MR located on an Indian reservation. (c) The agency must obtain notice of certification from the survey agency for all other ICFs/MR. (d) The notice must indicate that one of the following provisions pertains to the ICF/MR: (1) An ICF/MR meets the conditions of participation set forth in subpart I of part 483 of this chapter. (2) The ICF/MR has been granted a waiver or variance by CMS or the survey agency under subpart I of part 483 of this chapter. (3) An ICF/MR has been certified with standard-level deficiencies and (i) All conditions of participation are found met; and (ii) The facility submits an acceptable plan of correction covering the remaining deficiencies, subject to other limitations specified in §442.105. (e) The failure to meet one or more of the applicable conditions of participation is cause for termination or non-renewal of the ICF/MR provider agreement. [56 FR 48866, Sept. 26, 1991, as amended at 57 FR 43924, Sept. 23, 1992; 59 FR 56236, Nov. 10, 1994] If a survey agency finds a facility deficient in meeting the standards for ICFs/MR, as specified under subpart I of part 483 of this chapter, the agency may certify the facility for Medicaid purposes under the following conditions: (a) The agency finds that the facility's deficiencies, individually or in combination, do not jeopardize the patient's health and safety, nor seriously limit the facility's capacity to give adequate care. (b) The agency finds acceptable the facility's written plan for correcting the deficiencies. (c) If a facility was previously certified with a deficiency and has a different deficiency at the time of the next survey, the agency documents that the facility— (1) Was unable to stay in compliance with the standard for ICFs/MR for reasons beyond its control, or despite intensive efforts to comply; and (2) Is making the best use of its resources to furnish adequate care. (d) If a facility has the same deficiency it had under the prior certification, the agency documents that the facility— (1) Did achieve compliance with the standard for ICFs/MR at some time during the prior certification period; (2) Made a good faith effort, as judged by the survey agency, to stay in compliance; and (3) Again became out of compliance for reasons beyond its control. [56 FR 48866, Sept. 26, 1991, as amended at 57 FR 43924, Sept. 23, 1992; 57 FR 54712, Nov. 20, 1992; 59 FR 56236, Nov. 10, 1994] (a) A survey agency may certify a facility that fully meets applicable requirements for up to 12 months. (b) The survey agency may notify the Medicaid agency that the term of a provider agreement may be extended up to 2 months after the expiration date of the agreement under the conditions specified in §442.16. [43 FR 45233, Sept. 29, 1978. Redesignated at 53 FR 1993, Jan. 25, 1988, and amended at 59 FR 56236, Nov. 10, 1994] (a) Facilities with deficiencies may be certified under §442.105 for the period specified in either paragraph (b) or (c) of this section. (b) The survey agency may certify a facility for a period that ends no later than 60 days after the last day specified in the plan for correcting deficiencies. The certification period must not exceed 12 months, including the period allowed for corrections. (c) The survey agency may certify a facility for up to 12 months with a condition that the certification will be automatically canceled on a specified date within the certification period unless— (1) The survey agency finds that all deficiencies have been satisfactorily corrected; or (2) The survey agency finds and notifies the Medicaid agency that the facility has made substantial progress in correcting the deficiencies and has a new plan for correction that is acceptable. The automatic cancellation date must be no later than 60 days after the last day specified in the plan for correction of deficiencies under §442.105. [43 FR 45233, Sept. 29, 1978. Redesignated and amended at 53 FR 1993, Jan. 25, 1988; 59 FR 56236, Nov. 10, 1994] (a) A survey agency must terminate a facility's certification if it determines that— (1) The facility no longer meets conditions of participation for ICFs/MR as specified in subpart I of part 483 of this chapter. (2) The facility's deficiencies pose immediate jeopardy to residents' health and safety. (b) Subsequent to a certification of a facility's noncompliance, the Medicaid agency must, in terminating the provider agreement, follow the appeals process specified in part 431, subpart D of this chapter. [51 FR 24491, July 3, 1986, as amended at 59 FR 56236, Nov. 10, 1994] (a) Basis for denial of payments. The Medicaid agency may deny payment for new admissions to an ICF/MR that no longer meets the applicable conditions of participation specified under subpart I of part 483 of this chapter. (b) Agency procedures. Before denying payments for new admissions, the Medicaid agency must comply with the following requirements: (1) Provide the facility up to 60 days to correct the cited deficiencies and comply with conditions of participation for ICFs/MR. (2) If at the end of the specified period the facility has not achieved compliance, give the facility notice of intent to deny payment for new admissions, and opportunity for an informal hearing. (3) If the facility requests a hearing, provide an informal hearing that includes— (i) The opportunity for the facility to present, before a State Medicaid official who was not involved in making the initial determination, evidence or documentation, in writing or in person, to refute the decision that the facility is out of compliance with the conditions of participation for ICFs/MR. (ii) A written decision setting forth the factual and legal bases pertinent to a resolution of the dispute. (4) If the decision of the informal hearing is to deny payments for new admissions, provide the facility and the public, at least 15 days before the effective date of the sanction, with a notice that includes the effective date and the reasons for the denial of payments. [51 FR 24491, July 3, 1986, as amended at 59 FR 56236, Nov. 10, 1994] (a) Period of denial. The denial of payments for new admissions will continue for 11 months after the month it was imposed unless, before the end of that period, the Medicaid agency finds that— (1) The facility has corrected the deficiencies or is making a good faith effort to achieve compliance with the conditions of participation for ICFs/MR; or (2) The deficiencies are such that it is necessary to terminate the facility's provider agreement. (b) Subsequent termination. The Medicaid agency must terminate a facility's provider agreement— (1) Upon the agency's finding that the facility has been unable to achieve compliance with the conditions of participation for ICFs/MR during the period that payments for new admissions have been denied; (2) Effective the day following the last day of the denial of payments period; and (3) In accordance with the procedures for appeal of terminations set forth in subpart D of part 431 of this chapter. [51 FR 24491, July 3, 1986, as amended at 59 FR 56236, Nov. 10, 1994]
Title 42: Public Health
PART 442—STANDARDS FOR PAYMENT TO NURSING FACILITIES AND INTERMEDIATE CARE FACILITIES FOR THE MENTALLY RETARDED
Section Contents
§ 442.1 Basis and purpose.
§ 442.2 Terms.
§ 442.10 State plan requirement.
§ 442.12 Provider agreement: General requirements.
§ 442.13 Effective date of provider agreement.
§ 442.14 Effect of change of ownership.
§ 442.15 Duration of agreement for ICFs/MR.
§ 442.16 Extension of agreement for ICFs/MR.
§ 442.30 Agreement as evidence of certification.
§ 442.40 Availability of FFP during appeals for ICFs/MR.
§ 442.42 FFP under a retroactive provider agreement following appeal.
§ 442.100 State plan requirements.
§ 442.101 Obtaining certification.
§ 442.105 Certification of ICFs/MR with deficiencies: General provisions.
§ 442.109 Certification period for ICFs/MR: General provisions.
§ 442.110 Certification period for ICFs/MR with standard-level deficiencies.
§ 442.117 Termination of certification for ICFs/MR whose deficiencies pose immediate jeopardy.
§ 442.118 Denial of payments for new admissions to an ICF/MR.
§ 442.119 Duration of denial of payments and subsequent termination of an ICF/MR.
Subpart A—General Provisions
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§ 442.1 Basis and purpose.
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§ 442.2 Terms.
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Subpart B—Provider Agreements
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§ 442.10 State plan requirement.
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§ 442.12 Provider agreement: General requirements.
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§ 442.13 Effective date of provider agreement.
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§ 442.14 Effect of change of ownership.
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§ 442.15 Duration of agreement for ICFs/MR.
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§ 442.16 Extension of agreement for ICFs/MR.
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§ 442.30 Agreement as evidence of certification.
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§ 442.40 Availability of FFP during appeals for ICFs/MR.
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§ 442.42 FFP under a retroactive provider agreement following appeal.
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Subpart C—Certification of ICFs/MR
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§ 442.100 State plan requirements.
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§ 442.101 Obtaining certification.
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§ 442.105 Certification of ICFs/MR with deficiencies: General provisions.
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§ 442.109 Certification period for ICFs/MR: General provisions.
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§ 442.110 Certification period for ICFs/MR with standard-level deficiencies.
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§ 442.117 Termination of certification for ICFs/MR whose deficiencies pose immediate jeopardy.
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§ 442.118 Denial of payments for new admissions to an ICF/MR.
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§ 442.119 Duration of denial of payments and subsequent termination of an ICF/MR.
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Subparts D–F [Reserved]
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