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South Dakota Department of Health
South Dakota Department of Health

Health Facility Licensure

Civil Money Penalties (CMPs)

A civil money penalty (CMP) is a monetary penalty the Centers for Medicare & Medicaid Services (CMS) may impose against skilled nursing facilities (SNFs), nursing facilities (NFs), and dually-certified SNF/NF for either the number of days or for each instance a facility is not in substantial compliance with one or more Medicare and Medicaid participation requirements for Long Term Care Facilities. A portion of CMPs collected from facilities are returned to the States in which the CMPs are imposed. State CMP funds may be reinvested to support activities that benefit nursing facility residents and protect or improve their quality of care or life.

Note to providers:

Pursuant to the March 22, 2013 CMS Survey & Certification Memo, the Centers for Medicare & Medicaid (CMS) may impose civil money penalties (CMPs) on nursing homes in South Dakota when serious deficiencies are identified. The Department of Health does not recommend or impose CMPs. However, this will not preclude CMS from imposing CMPs directly on South Dakota nursing facilities.

CMS Civil Money Reinvestment Program 

  • CMP funds must be used to support activities that benefit nursing home residents in South Dakota. The specific use of CMP funds collected from Long Term Care Facilities as a result of federally imposed CMPs must be approved by the SD Department of Health and by the Centers for Medicare and Medicaid Services (CMS) Regional Office on behalf of the Secretary (CMS). Outlined below is the process to follow when requesting the use of Civil Money Penalty (CMP) funds.
    • Project requests shall be submitted to the Office of Licensure and Certification using the CMP application.
    • Requests for CMP funds require a detailed budget.
    • You may email the application and budget directly to Cassandra.Deffenbaugh@state.sd.us.
    • Please include information in the request reflecting support by partners or health facilities.
    • Response to CMP project requests will be either:
      • An approval;
      • A denial; or
      • A request for more information.
    • CMP funds may not be used to enlarge or enhance an existing appropriation or statutory purpose that is substantially the same as the intended project(s) or use(s).

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Content last updated: November 8, 2024. For questions, contact: