The Biden administration announced plans Friday to toughen oversight of the nation’s poorest-performing nursing homes with escalating fines and terminating federal funding for the homes that fail to improve.

The administration will overhaul the Centers for Medicare and Medicaid Services “special focus facility” program of homes with poor safety records. Homes in the program that fail to improve will be fined escalating penalties for violations. Those facilities with safety violations that generate at least two “immediate jeopardy” warnings could be terminated from Medicare or Medicaid funding – a potential death blow for homes that rely on federal funding to sustain operations.

The agency that oversees Medicare and Medicaid will also advise states to consider a facility’s staffing level when deciding whether to assign homes to the special focus program.

With more than 200,000 patients and staff dying from COVID-19 since 2020, administration officials said the reforms are necessary to fix longstanding safety and staffing challenges.

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Health and Human Services Secretary Xavier Becerra said his agency is “cracking down on enforcement of our nation’s poorest-performing nursing homes.”

“We are demanding better, because our seniors deserve better,” Becerra said. 

CMS lists more than 80 homes in the special focus program, including 13 new entrants and another 26 that have not improved. Homes in the program have about twice the number of deficiencies, more serious safety problems, including patient harm and injury, and a pattern of serious problems, according to CMS.

Once selected for the special focus program, CMS said nursing homes will face tougher requirements before exiting. Homes that graduate will receive close scrutiny for another three year to ensure they meet standards.