CMS Releases Guidance on Civil Money Penalty Funds

On September 30, CMS released a memo to state survey agency directors titled "Use of Civil Money Penalty (CMP) Funds by States." Here is the Memorandum Summary:

"Centers for Medicare & Medicaid Services (CMS) Approval: States must obtain CMS approval for the use of any CMP funds through either:

• Categorical Approval: The use has been identified by CMS via written policy as an acceptable use that does not require prior approval. See Section D for the initial list of categorically approved used, or;
• Prior Approval: States must receive prior approval from CMS for any CMP use that is not currently on the list of pre-approved categorical uses.

State Options to Enlist Many Entities: States may direct collected CMP funds to a variety of capable organizations so long as funds are used in accordance with statutory intent and the use is approved by the CMS."

To read the complete memo, click here.