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Micro-Diploma

Nursing Home Operations

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Table of Contents

FREE PREVIEW — Section 1 of Module 1

Introduction to Long-Term Care Settings

Unit
  • Long-term care continuum: Nursing homes (skilled nursing facilities) provide 24-hour skilled nursing care, rehabilitation, and custodial support for individuals who cannot live independently. They serve older adults, chronically ill patients, and those recovering from surgery or illness.
  • Levels of care: Skilled nursing facilities offer both skilled care (medical services requiring licensed professionals) and custodial care (assistance with activities of daily living such as bathing, dressing, and eating). Understanding the distinction is critical for appropriate resident placement and reimbursement.
  • Regulatory oversight: Nursing homes are regulated by federal (Centers for Medicare & Medicaid Services), state (health departments), and local agencies. Compliance with the Nursing Home Reform Act (1987) and current federal regulations is mandatory for participation in Medicare and Medicaid.
  • Licensure and certification: Facilities must obtain state licensure and federal certification to receive government reimbursement. The survey process, including unannounced inspections, evaluates compliance with health, safety, and quality standards.
  • Resident rights: Federal regulations guarantee residents dignity, privacy, freedom from abuse, and the right to participate in care decisions. Administrators must ensure these rights are integrated into daily operations and staff training.
  • Patient population: The typical nursing home resident has multiple chronic conditions, cognitive impairment (e.g., dementia), functional limitations, and high care needs. Staffing and care models must accommodate these complexities.
  • Care delivery models: Traditional medical model emphasizes clinical treatment; the person-centered care model focuses on individual preferences, autonomy, and quality of life. The shift toward person-centered care affects facility policies, environment, and staff interactions.
  • Key stakeholders: Residents, families, interdisciplinary care teams, regulators, payers (Medicare, Medicaid, private insurance), and community organizations. Effective operations require collaboration and communication among all parties.
  • Reimbursement models: Nursing homes are primarily funded through Medicare for short term post acute care, Medicaid for long term custodial care, and private pay. Understanding the prospective payment system for Medicare and the case mix reimbursement for Medicaid is essential for financial viability and accurate billing.
  • Staffing requirements: Federal regulations require 24 hour licensed nursing services and a registered nurse at least 8 hours per day, 7 days a week. States may impose additional staffing minimums. Adequate staffing levels directly impact quality of care, survey outcomes, and resident satisfaction.
  • Quality measures and reporting: The Centers for Medicare and Medicaid Services publicly report quality measures including pressure ulcers, falls, and hospital readmissions. Facilities must participate in the Minimum Data Set assessment process and maintain a Quality Assurance and Performance Improvement program to identify and address deficiencies.
  • Admissions and discharge planning: Facilities must conduct pre admission screenings and develop comprehensive discharge plans for each resident. Transitions of care require coordination with hospitals, families, and community providers to ensure continuity and avoid unnecessary readmissions.
Scope of Practice

Role: Nursing Home Administrator

Within scope:
  • Overseeing daily operations, including staffing, budgeting, and compliance
  • Developing and enforcing policies that align with federal and state regulations
  • Ensuring resident rights are protected and care plans are implemented
  • Leading the interdisciplinary team and coordinating care transitions
  • Preparing for regulatory surveys and managing corrective action plans
Outside scope:
  • Diagnosing medical conditions or prescribing treatments
  • Performing direct nursing or clinical procedures
  • Operating without a valid administrator license or in lieu of medical director decisions
  • Making independent clinical judgments that override provider orders
  • Ignoring mandatory reporting requirements for abuse, neglect, or financial exploitation
Regulatory Note

Regulation: The Nursing Home Reform Act (OBRA '87) establishes federal standards for resident care, quality of life, and rights in nursing homes participating in Medicare and Medicaid. It mandates comprehensive resident assessments, care plans, and protections against involuntary discharge.

Source: 42 CFR Part 483

Terminology
Skilled Nursing Facility (SNF)
A facility that provides 24-hour skilled nursing and rehabilitation services, typically after a hospital stay.
Custodial Care
Non-medical assistance with daily living activities, such as bathing, dressing, and eating.
Person-Centered Care
An approach that respects individual preferences, values, and social needs in care delivery.
Quick Revision
  • Nursing homes are skilled nursing facilities providing 24-hour medical and personal care.
  • Regulation stems from federal (OBRA '87), state licensure, and local health codes.
  • Key concepts include levels of care, resident rights, and person-centered care models.
  • Administrators must understand stakeholder roles and regulatory requirements to operate effectively.

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