Civil Money Penalty Projects

     In accordance with the Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203), the Louisiana Legislature established the Nursing Home Residents’ Trust Fund (RS 40:2009.11(F)(2)).  Civil money penalties (CMPs) collected from nursing homes for regulatory violations are deposited to the fund.  Federal regulation (42 CFR §488.434) requires that CMPs “must be used entirely for activities that protect or improve the quality of care for residents.”

      The Centers for Medicare and Medicaid (CMS) Survey and Certification (S&C) Memorandum 12-13-NH provides guidance about the use of the funds including examples of appropriate and prohibited uses of the funds.  (Louisiana is cited as an example for the appropriate use of funds.)  The S&C memorandum provides that states may grant funds to “a variety of capable organizations as long as funds are used in accordance with statutory intent, the use consistent with Federal law and policy, and the use is approved by the CMS.” 

      CMS Regional Office VI has developed an electronic form that applicants must complete and submit to the Louisiana Department of Health (LDH).  All completed applications must be submitted through the Health Standards Section (HSS) of LDH.  Prior to submission of each application, HSS ensures that it meets the CMS requirements.

      Funded projects fall generally into three categories:

  1. Solicited and unsolicited projects that align with the department’s priorities for quality improvement efforts.
  2. Educational efforts for nursing facility staff to promote best practices in individualized care.
  3. Projects proposed by nursing facilities to improve the quality of life and care for their residents.


The link below presents recent and current CMP funded projects.

CMP Report


 For additional information contact