*This is an archive page. The links are no longer being updated. 
1991.04.30 :  California Compliance with OBRA Survey Rules

Contact:  Bob Hardy (202) 245-6145
April 30, 1991

       The Health Care Financing Administration announced
today the successful end to its dispute with the state of
California.
       The dispute began last fall when the state declined to
comply with two provisions of federal nursing home reforms. 
The reforms were enacted into law under the Omnibus Budget
Reconciliation Act of 1987 (OBRA 87) and went into effect on
Oct. 1, 1990. 
     From October 1990 through March 1991, California declined
to survey nursing homes in accordance with federal
requirements and failed to submit an approvable amendment to
its state plan for paying nursing homes under the Medicaid
program.
       California is now in compliance with the OBRA 87
requirements, HCFA said.  The state recently submitted a state
plan amendment, which HCFA subsequently approved, for paying
nursing homes participating in the Medicare and Medicaid
programs.  California also has been surveying nursing homes
using the federal survey forms, procedures and guidelines
since March 25, *This is an archive page. The links are no longer being updated. 
1991.  
       Because California is now in compliance with the OBRA
87 requirements, HCFA and California have agreed to request
the cancellation of HCFA's compliance action.  This action was
initiated in January 1991 and, had California not come into
compliance, would have culminated in a hearing.

       "I am pleased that we have been able to successfully
resolve this matter.  But the biggest winners are California's
nursing home residents, whose safety, health and well-being
are now being assured to the fullest extent of federal law,"
said HCFA Administrator 
Gail R. Wilensky, Ph.D.
       "Since there are no compliance issues remaining with
California, no compliance hearing is necessary.  We have asked
the hearing officer to close the matter," Dr. Wilensky
explained. 
       HCFA will continue to monitor California and the other
states to ensure their compliance with the OBRA 87
requirements.  For example, validation surveys will be
conducted in which federal surveyors will inspect 5 percent of
California nursing homes to confirm the accuracy of state
surveys.  HCFA also will respond to complaints about the
quality of care in specific facilities.
     "While we expect California to continue to comply with
the requirements of the nursing home reforms, we will take all
the necessary steps should that fail to be the case,"
Dr. Wilensky said.  

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