Civil Money Penalty Funds

Civil Money Penalty (CMP) Reinvestment Application accepts application for new project during the following application periods (excludes Communicative Technology):
January 1 – February 28
July 1 – August 31

HHSC is no longer accepting applications for Communicative Technology.

Applications for Nursing Home In-Person Visitation Aids Requests Reopened

A facility may request the use of Civil Money Penalty (CMP) Reinvestment funds to purchase portable fans and portable room air cleaners with high-efficiency particulate air (HEPA, H-13 or -14) filters to increase or improve air quality. A maximum amount of $3,000 per facility including shipping costs may be requested. When utilizing these items for visitation purposes, facilities need to ensure appropriate life safety code requirements found at 42 CFR 483.90 are met, unless waived under the PHE declaration.  Applicants must:

Only certified nursing facilities are eligible to apply for funds. A facility cannot be reimbursed for any expenses or purchases prior to the execution of a contract with HHSC.

HHSC CMP Project Application Guidance

Sections 1819 and 1919 of the Social Security Act allow CMP funds to be used for projects and activities that benefit residents, including

  • Culture change projects
  • Resident or family councils
  • Direct improvements to quality of care
  • Consumer information
  • Resident transition due to facility closure or downsizing
  • Preparing residents for community placement
  • Training for facility staff and surveyors

CMP funds may not be used for uses prohibited by law, regulation, or CMS policy. These include but are not limited to:

  • Projects denied by CMS
  • Survey and certification operations or State expenses not previously mentioned above
  • Capital expenses of a facility
  • HHSC does not approve costs that involve renovation of infrastructure (e.g., rewiring electrical outlets, moving walls, or resurfacing floors)
  • Nursing home services or supplies that are the responsibility of the nursing facility
  • Funding projects, items or services that are not directly related to improving the quality of life and care of nursing home residents
  • Projects for which a conflict of interest or the appearance of a conflict of interest exists
  • Long term projects (greater than 3 years)
  • Temporary manager salaries (exceptions may apply)
  • Supplementary funding of federally required services

States must obtain approval from CMS before using federally imposed CMP funds to pay for projects. Twice a year, HHSC evaluates proposals to use CMP funds by using criteria developed by CMS and published in CMS S&C 12-13-NH (PDF). A decision by HHSC not to forward a proposal to CMS is not subject to appeal.

CMP is a cost reimbursement program. HHSC does not disburse CMP funds prior to contract execution. Any purchases made prior to contract execution are not allowed and will not be reimbursed. Organizations must submit invoices and receipts for completed projects to be reimbursed for expenses incurred pertaining to the project. Reimbursement will be made approximately 30 days after processing the invoice.

For additional information, please visit the CMS Civil Money Penalty Reinvestment Program website.

If you have any questions, please email the CMP team prior to submitting your application:

Application Packet

Failure to submit all completed forms is considered an incomplete packet and will be denied.

Submit completed application packets to: CMP Application mailbox.

Tips for Completing an Application

Incomplete application packets will not be accepted.

  • Answer each question completely, address each component of each question.
  • Provide specific details about the activities you plan to engage in; do not assume the reader will know what you plan to do.
  • Ensure that your summary is an actual summary of the project.
  • Include expected outcomes and how they will be measured.
  • Describe how the project will benefit the nursing facility residents.
  • If your project includes training, provide specific details about how the facility or staff will incorporate training into daily practice and how that training will improve resident outcomes.
  • Include a realistic timeline for activities.
  • Include a line-item budget with the itemized costs of requested reimbursements in the CMS Application Budget form (i.e. cost of item, quantity being purchased, specific product information, taxes, shipping and the total cost). HHSC will not pay for items not listed in the itemized budget.
  • Include a complete list of contractors and subcontractors you plan to use.
  • Identify the signature authority (their title and email address) for the CMP agreement.
  • Include letters of support from facilities who have implemented the project.
  • If the project has been completed in another state provide outcomes of the project.

Frequently Asked Questions

What information is important to include in my application?

Include a detailed budget sheet with explanations for each cost. If the proposal includes purchasing items such as machinery or furniture, include a specification sheet showing details of the item and bids. Cost estimates from vendors are very helpful.

You must also submit the Budget in MS Excel format, HHSC Supplement to the Application for CMP Funds (PDF), and Form AP-152 Application for Texas Identification Number with your application response.

What Happens After I Submit My Application?

Each application received during the submission period is reviewed for completeness. An application must be complete to be considered. Each application submitted will receive a "receipt by" date and all complete applications will receive a "complete" date. Projects are funded based on the receipt date and are subject to available funding, HHSC review and CMS approvals.

Depending upon the complexity of your proposal or the quality of your application, HHSC may request additional information. After the close of the application period, the HHSC-designated CMP panel will determine whether to forward your proposal to the HHSC commissioner for approval. The CMP panel evaluates proposals by applying the CMS criteria set forth in S&C 12-13-NH and 42 CFR 488.433. Applications approved by the HHSC commissioner will be forwarded to CMS for approval.

If your proposal is forwarded to CMS, CMS may request additional information. If CMS approves your proposal, HHSC will develop a CMP agreement that describes the terms, conditions, deliverables and time frames required for disbursement of CMP funds. Please be aware that HHSC does not disburse CMP funds before invoices and receipts are received.

If my application/project proposal is denied can I reapply during the next application period?

If you receive a denial from HHSC you may re-submit your project proposal during the next application period. However, if your project proposal is denied by CMS it may not be submitted for reconsideration.

Can CMP funds be used for the cost of travel and per diem for meals?

Yes. Any conferences, with or without travel, necessary to accomplish the purpose of the grant must have prior CMS approval. These requests must be priced separately in the budget and include the following information:

  1. A description of their purpose
  2. The number of participants attending
  3. A detailed statement of the cost to the project
  4. The cost of any food or beverages
  5. The cost of audio-visual services for a conference
  6. The cost of employee or contractor travel to and from a conference; and
  7. A discussion of the methodology used to determine which costs relate to a conference

If the cost estimate includes travel, HHSC will reimburse using State of Texas travel rates.

To apply for funding for several locations, should each location be submitted as a separate application?

No. If the project will be the same at each location, the organization should submit one application and attach a list of all the locations included in the budget plan. One application is also acceptable if the projects will vary only slightly in detail from location to location.

If there is a significant variance in the project, the organization would need to submit separate applications for each location that has the significant variance.

If my CMP plan involves any construction, structural changes or electrical work to the facility, are there any additional actions that need to be completed?

Any project that requires construction, structural changes or electrical work to a facility is considered a capital project. Capital projects are prohibited.

If my organization has a project sponsor or any subcontractor that is not a health care provider already required to comply with HIPAA, and the project includes contact with nursing facility residents or their families, will any additional actions need to be taken?

Yes. You will be required to complete a Data Use Agreement (PDF) as prescribed by the Texas Health and Human Services Commission.

When Can an Entity or Facility Begin Purchasing for Their CMP Project?

An entity or facility should not incur any cost obligations for the CMP project until the HHSC commissioner or designee has signed the CMP agreement. Reimbursement will not be made until the CMP agreement has been fully executed.

Disclaimer: This guidance is not legal advice from HHSC, and applicants should consult their legal counsel as they deem appropriate.

Is there a grace period for submitting applications after the deadline?

No. All applications must be submitted via email before 11:59 p.m. of the deadline date. There are no exceptions.

Who may apply for CMP funds?

HHSC may distribute funds to any entity provided that the funds are used for CMS-approved projects to protect or improve services for residents of Medicare- or Medicaid-certified nursing facilities and provided that the responsible receiving entity is:

  • Qualified and capable of carrying out the intended project or use
  • Not in a conflict-of-interest relationship with the entity or entities that will benefit from the intended project or use
  • Not a recipient of a contract, grant or other payment from federal or state sources for the same project or use
  • Not paid by a state or federal source to perform the same function as the CMP project or use
  • A qualified nursing facility that has no Immediate Jeopardy, Substandard Quality of Care or Immediate Threat finding in the 6 months immediately prior to the beginning of the application period.

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 or use.

Can a facility apply for CMP funds if it has a pending CMP?

A facility that has pending CMPs may apply for CMP funds. The facility's application may be suspended until HHSC receives the final disposition of the pending CMP.

If an organization or corporation is applying for funding for several facilities and one or more facilities has a pending CMP, will the application for the organization be suspended?

No. The application for the organization will not be suspended. If the application is approved by the HHSC commissioner or designee and CMS, the applicant will be provided a letter stating that the funds may be used for all facilities except the facility with the pending CMP until HHSC receives the final disposition of the CMP.

What happens if there is a facility name change or change of ownership?

A revised application, Form 4732 and Form AP-152 will need to be submitted. This information will be forwarded to CMS for review and approval. All invoices will need to reflect the correct name and Tax Identification Number (TIN). Any changes to the application or supplemental documents may cause a delay in the review and approval process.

Can CMP funds be used for Nurse Aide Training?

No. Applications cannot include CMP funding for nurse aide training and related expenses. Per 42CFR §433.15 and §483.158, Medicaid pays for Nurse Aide Training and Competency Program (NATCEP) with a 50/50 federal/state match.

Approved Projects for Civil Money Penalties

Project Title Amount Approved for the Plan Year Start and End Dates Recipient of Funds
SNF Clinic $467,600.00 07/01/2020-6/30/23 Long Term Care Consultants, LLC
Improving Resident-Focused Assessment and Monitoring $823,775.29 11/01/2020-10/31/22 TMF Health Quality Institute
Next Steps in Dementia Care $528,200.71 11/01/2020-10/31/22 TMF Health Quality Institute
Discharge Rights Flyer $12,158.71 11/01/2020-10/31/22 Office of the State Long-Term Care Ombudsman
Rekovo for Improved Balance Function $95,725.37 09/15/2020-9/14/23 Rekovo LLC
Creative Solutions in Healthcare/SNFClinic $495,800.00 11/01/2020-4/30/22 Creative Solutions in Healthcare, Inc
Austin Memory Care at Retirement and Nursing Center $67,572.31 11/01/2020-10/31/2023 Retirement and Nursing Center Austin
Senior Connect $27,376.00 10/15/2020-10/14/23 Morningside Ministries
Honoring the Past Initiative $59,137.00 11/01/2020-10/31/23 Shinnery Oaks Community
A Sense of Renewal $16,864.85 11/01/2020-10/31/22 Pomerado Ranch Healthcare, Inc. dba Golden Acres Living and Rehabilitation Center
A Sense of Peace $14,033.77 11/01/2020-10/31/2022 Forney Lake Healthcare, Inc. dba Rowlett Health and Rehabilitation Center
Enrichment for All $38,541.68 10/15/2020-10/14/2023 Capstone Healthcare Estates at Veterans Memorial (Formerly Grace VM Holdings Group LP DBA Grace Care Center at Veterans Memorial)
Keller Oaks-Implementation of Its Never Too Late Technology $91,789.09 12/1/2021-11/30/2024 Keller Oaks Healthcare Center
Preserving Dignity through Innovative Technologies $49,166.68 11/01/2020-10/31/2023 Legend Oaks HealthCare and Rehabilitation of Kyle
Wisteria Place -Implementation of Its Never Too Late: iN2L $84,107.11 11/01/2020-10/31/2023 Wisteria Place Living
Mobile Dentistry - Direct Patient Care and Facility Education $4,020,777.00 8/1/2019-7/31/2022 University of Texas Health - San Antonio
Care My Way - IN2L $88,356.19 9/1/2019-8/31/2022 SB Lockney Healthcare Management dba SkyBlue Healthcare
Life Works Wellness - Enhancing Activity Programs with a
Whole-Person Wellness Approach
$175,178.39 3/1/2020-2/28/2022 Lifetime Wellness, LTD
Preventing Patient Falls: Incorporating Tai Chi into the Patient's Plan Of Care to Improve Balance, Strength, and Flexibility $16,365.00 11/1/2020-10/31/2021 The Methodist Hospital dba Houston Methodist Hospital
Crafting with Friends 2.0 – Leather Craft Workshops $236,194.58 12/1/2019-11/30/2022 Craft DUO
Implement leather craft workshop in 8 nursing home $155,614.60 4/1/2019-3/31/2022 Craft DUO
IN2L Technology - decrease psychotropic medication use and demonstrate reduction in stress levels of staff $17,538.41 4/1/2019-3/31/2022 Life Care Services dba Walnut Place
Resident Engagement Program - Integrating IN2L Technology (3-year project) $40,358.00 3/15/2019-3/14/2022 MRC Towncreek dba MRC Creekside
Resident Engagement and Calming Technology - REACT Program - IN2L (3-yr project) $51,367.00 3/1/2019-2/28/2022 MRC Cornerstone dba Cornerstone Retirement Community
IN2L Technology - Engagement through use of computer applications $81,000 4/1/2019-3/31/2022 HSMTX/Janisch-Houston LLC dba West Janisch Health Care Center
Time for Change: IN2L Implementation (10 Facilities; 3-year project) $701,830.41 7/1/2019-6/30/2022 Keystone Healthcare, LLC
Rhythmic Abilities - Making Music with the Dementia Population $10,253.16 03/15/2020-3/14/22 Dewitt Medical District dba Sonterra Health Center