Civil Money Penalty Reinvestment Program
The Centers for Medicare & Medicaid Services (CMS) makes Civil Money Penalty (CMP) Reinvestment funds available to support projects that directly improve the quality of life and quality of care for nursing home residents. These funds come from federal penalties collected from nursing facilities and are returned to states to support resident‑focused initiatives through a grant process.
CMP reinvestment funds may be used for a wide range of activities that benefit residents or strengthen their care, including:
- Training for staff or resident‑support programs
- Transition preparation for residents moving between care settings
- Culture change and quality‑of‑life initiatives
- Quality‑of‑care improvements
- Support for resident and family councils
- Assistance for residents affected by facility closures or downsizing
CMS may impose civil monetary penalties on Medicare‑certified nursing homes that are out of compliance with federal participation requirements. A portion of these penalties is returned to states to be reinvested in projects that enhance resident care and well‑being.
CMP reinvestment funds may be approved for use by CMS‑certified nursing homes (provider type 26). Swing‑bed hospitals (provider type 03) are not eligible. Examples of allowable uses include:
- Direct improvements to quality of care
- Quality‑of‑life and culture‑change initiatives
- Facility improvement efforts approved by CMS, such as technical assistance, staff training, or surveyor training
- Projects that support resident and family councils
- Consumer information resources
- Assistance for residents affected by facility closure or decertification
- Time‑limited expenses related to relocating residents to other facilities or community‑based settings
CMP funds cannot be used for research, indirect benefits to residents, capital improvements, duplicating CMS requirements, or nursing home employee salaries.
For more information on allowable uses, non‑allowable uses, and examples of funded projects, visit the CMS resources:
- Examples of Allowable Uses of CMP Reinvestment Funds
- Examples of Non‑Allowable Uses of CMP Reinvestment Funds
- CMS Federal Grant Opportunity
- Civil Money Penalty Reinvestment Program
- Montana’s CMP Reinvestment State Plan
The CMP grant funding for CMS-certified nursing homes is available for the following projects:
- Sustainable projects that:
- Collaborative safety;
- reduce slips and falls;
- improves infection control (more specifically urinary tract issues);
- reduces emergency room and/or hospitalization; and,
- improves mental health of staff and/or residents such as:
- Mental health/substance abuse education for staff, residents, and families
- Training for facility staff on assessing, interventions and treatment/services options—this can include tools used for assessing but not actually doing the assessment
- Mental health tools/activities/exercises that are beneficial for mental health for residents and staff
- Reinvestment Projects: Funding for a variety of projects for nursing homes to benefit residents. Projects can span a wide array of topics and involve improving the quality of life for residents.
