State Enforcement

MCL 333.21799b of Public Act 368 of 1978 of the Public Health Code details enforcement actions that can be taken by the Bureau of Health Systems (BHS) when investigation reveals the following:

►   a nursing home is not in compliance with state regulations,

►   noncompliance impairs the ability of the licensee to deliver an acceptable level of care and services,

►   or, in the case of a nursing home closure, a notification to the Department of Community Health of the finding(s).

One or more of the following actions may be included in a correction notice issued to the licensee:

●    Suspend the admission or readmission of patients to the nursing home.

●    Reduce the licensed capacity of the nursing home.

●    Selectively transfer patients whose care needs are not being met.

●    Initiate action to place the home in receivership.

●    Require appointment of a department approved temporary administrative advisor or a temporary clinical advisor.

●    Require appointment of a department approved temporary manager to oversee the nursing home's achievement of sustained compliance or to oversee the orderly closure of the nursing home.

●    Issue a correction notice to the licensee specifying the corrective action to be taken and the period of time in which the corrective action is to be completed.

MCL 333.20165 of Public Act 368 of 1978 permits the Department to deny, limit, suspend, or revoke a nursing home license under certain conditions of noncompliance.

MCL 333.20168 of Public Act 368 of 1978 permits the Department to issue an emergency order to limit, suspend or revoke a nursing home license when conditions seriously affect the health, safety, and welfare of individuals receiving care or services.

Federal Enforcement

The Social Security Act, Sections 1819(h) and 1919(h) as well as the Code of Federal Regulations (42CFR 488.404; 42CFR488.406; 42CFR488.408) provide that CMS or the State may impose one or more remedies in addition to, or instead of, termination of the provider agreement when the State or CMS finds that a facility is out of compliance with participation requirements.  The remedies available include:

      ●    Civil money penalties

      ●    Denial of medicaid payments

      ●    Denial of payment for new admissions

      ●    Termination of the provider agreement

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