The Centers for Medicare & Medicaid Services (CMS) has reissued a major funding opportunity aimed at strengthening staffing levels in nursing homes across the country. On February 9, 2026, the agency posted an updated Notice of Funding Opportunity (NOFO) for its Nursing Home Staffing Campaign. A similar notice was released in January 2025 but ultimately was not carried out. This time, CMS is moving forward with plans to distribute an estimated $80 million to support nurse recruitment and retention. How the Program Works Through the NOFO, CMS is seeking organizations to serve as Financial Incentive Administrators (FIAs). These selected entities…
Author: Mordy Y
Ohio nursing homes are still waiting for clarity after the Ohio Supreme Court ruled that the state underpaid facilities by an estimated $572 million over a two-year period. The dispute centers on how the Ohio Department of Medicaid calculated reimbursements under a revised payment formula. In its ruling last year, the court found the department’s interpretation of state law significantly reduced funding meant for quality incentive payments. “The department’s interpretation does not reflect what the enacted legislation says, and it dramatically shortchanges the statutorily mandated increase to the quality-incentive pool,” the court wrote. Ohio Medicaid argued that implementing the decision…
A long-standing Medicare policy intended to regulate access to nursing home rehabilitation may now be prolonging hospital stays for older adults—without improving patient outcomes or reducing costs—according to new research from Brown University. Known as the “three-day rule,” the policy requires Medicare beneficiaries to spend at least three consecutive days admitted to a hospital before Medicare will cover care in a skilled nursing facility. The rule dates back to 1965, when hospital stays often lasted weeks and the requirement helped control post-acute care use. Today, researchers say, it no longer aligns with modern medical practice. “When the policy was created,…
Connecticut’s Democratic lawmakers are pressing Congress to revive federal minimum staffing standards for nursing homes, arguing that the rollback of the 2024 rule puts residents at risk and leaves overworked caregivers without basic protections. The proposal, led by U.S. Sen. Richard Blumenthal, would reinstate minimum staffing requirements that were finalized in 2024 and later repealed by the Trump administration in December 2025. Blumenthal said the standards were designed to set a baseline for how many staff members should be available to care for residents — and to prevent avoidable harm. “That would establish basic minimum standards for how many of…
Staten Island, N.Y. — Leaders of Silver Lake Specialized Care and Rehab Center say the Brighton Heights nursing home could be forced to shut its doors unless New York increases Medicaid reimbursement rates that they argue have not kept pace with the cost of care. Michael Kraus, the facility’s administrator, said the 278-bed nursing home is under severe financial strain because Medicaid payments for many residents fall far below what it costs to deliver services. “We’re at the end of the road,” Kraus said. “That’s why we’re bringing a lawsuit. I’ve tried every avenue — gone to the state, appealed…
Raleigh, NC — North Carolina Attorney General Jeff Jackson has joined a coalition of 18 state attorneys general urging federal health officials to restore minimum staffing standards for nursing homes, warning that rolling back those rules could leave seniors at greater risk of neglect and preventable harm. In a comment letter to U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz, the attorneys general asked the federal government to reinstate protections they say were designed to ensure enough nurses are available to safely care for residents…
Boston, MA — Eleven Massachusetts nursing homes operated by Next Step Healthcare have been placed into court-ordered receivership after their landlord accused the company of owing nearly $15 million in unpaid rent and fees. The landlord, a group of companies affiliated with Cuarzo Healthcare, claims most of the unpaid rent dates back to 2022 and 2023. Separate court filings from a lender say Next Step also owes more than $3 million in outstanding loans. In filings, Cuarzo described Next Step’s finances as being in “dire financial condition” and warned that instability could threaten resident care. A Middlesex County judge granted…
Virginia lawmakers are considering a proposal that would cut certain state payments to nursing homes that pay what regulators deem “excessive” rent to affiliated landlords, including real estate investment trusts. If enacted, the measure would be among the first in the nation to directly target rent levels rather than ownership transactions. The bill, SB 808, is sponsored by Republican state Sen. Glen Sturtevant. It would require nursing facilities to disclose whether they pay rent, identify who receives those payments, and face financial penalties if rent exceeds fair-market benchmarks. Under the proposal, the state’s Department of Medical Assistance Services would reduce…
Grand Rapids, MI — A Michigan woman who fraudulently posed as a licensed registered nurse and worked inside a nursing home has been sentenced to more than six years in federal prison, according to the U.S. Department of Justice. Federal prosecutors said 51-year-old Leticia Gallarzo received a 75-month prison sentence after admitting to creating falsified medical credentials and stealing the identity of a real nurse licensed in Michigan. The sentence includes penalties for both fraud and aggravated identity theft. Stolen Identity Used to Gain Employment According to court records, Gallarzo assumed the identity of an actual registered nurse before applying…
Late last year, the federal government rolled back key elements of the Biden administration’s nursing home staffing mandate. Now, Arizona Attorney General Kris Mayes is joining a coalition of attorneys general pushing back, urging regulators to reconsider the move. In a letter sent to the Centers for Medicare and Medicaid Services, Mayes and her counterparts argue that the decision to repeal parts of the rule undermines resident safety and ignores evidence linking higher staffing levels to better health outcomes in long-term care settings. Staffing standards at the center of the debate The now-repealed requirements would have set national minimums for…
