MassHealth Raises Nursing Home Staffing Penalty to 8%
MassHealth increased Medicaid payment penalties for nursing homes that fail to meet Massachusetts' minimum staffing standard of 3.58 nursing hours per resident per day, effective Thursday. Facilities staffing below 3.00 HPRD now face up to an 8% payment cut, up from a prior maximum of 3%; homes between 3.00 and 3.58 HPRD remain subject to the old 0.5%-3% penalty range. The change follows local reporting that found roughly half of the state's nursing homes violated at least one staffing standard, though only about five facilities would have triggered the new higher penalty based on recent payroll data. MassHealth also added an incentive exempting facilities reaching 4.00 HPRD from a separate rule requiring 75% of revenue be spent on direct care, a provision advocates worry could divert funds from resident care.