New Bill Seeks to Ban Private Equity from Medicare
A new bicameral bill introduced by Senator Chris Murphy (D-CT) and Representative Mary Gay Scanlon (D-PA) seeks to ban private equity ownership of hospitals and nursing homes by making them ineligible for Medicare certification and funding. This bill, co-sponsored in the Senate by Senators Richard Blumenthal (D-CT) and Jeff Merkley (D-OR) joins another bill introduced on March 23 to provide legal protections to healthcare whistleblowers who report misconduct and neglect at private equity-owned healthcare facilities. These two bills track closely with Sen. Murphy’s recently released report Aided and Abetted: How the Trump Administration is Helping Private Equity Take Over Health Care. LeadingAge does not support a ban on private equity ownership and will be monitoring this bill closely.
OIG Releases Reports on Antipsychotics in Nursing Homes
The Department of Health and Human Services (HHS) Office of the Inspector General (OIG) released a two-part series of reports on March 19 investigating antipsychotic usage in nursing homes. The first report focused on antipsychotic prescribing and the second report focused on providers’ assignment of schizophrenia diagnoses to justify the use of antipsychotic medications. The reports evaluated 40 nursing home inspections and resulted in recommendations from OIG that CMS increase oversight on nursing home practices involving antipsychotics, such as ensuring greater involvement from medical directors and pharmacists, and take steps to further reduce inappropriate prescribing and diagnosing practices. These recommendations are consistent with actions taken by CMS such as schizophrenia audits and increased scrutiny on the role and responsibilities of the medical director related to antipsychotic usage. LeadingAge members can refer back to this tip sheet for a refresher on antipsychotics-related compliance.
CMS Updates Advance Beneficiary Notice of Noncoverage Form
The Centers for Medicare & Medicaid Services (CMS) has released an updated Advance Beneficiary Notice (ABN) Form CMS-R-131. CMS improved the readability and design of the form, but the rest remains consistent with previous forms. The form is available in English and Spanish. The form should be used by providers, including home health, hospice, and nursing homes, to notify Medicare beneficiaries when coverage is expected to be denied for certain services. Home health and hospice providers are required to use this form and can begin using the updated form now. Nursing homes use this form for services under Medicare B. Find the form in the downloads section of the CMS Beneficiary Notices Fee-for-Service ABN page. Providers must use this form starting May 12, 2026.
