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.” 

      We do not have a firm deadline for submission of unsolicited projects.  However, projects are considered in terms of their relevance to department priorities and the budget constraints in place at the time of the submission.  For that reason, we encourage applicants to submit a brief proposal summary using the format provided here.  If the department wishes to pursue the project, the applicant will be advised to submit the CMP Reinvestment Program application and budget templates.  

      Funded projects fall generally into one of these 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 documents below provide more guidance about the acceptable and unacceptable uses of CMP funds.  

Use of Civil Money Penalty (CMP) Funds by States 

Examples of Non-Allowable Uses of CMP Reinvestment Funds


The link below presents recent and current CMP funded projects in Louisiana.

CMP Report


 For additional information contact