- Dec 10, 2005
Taking federal money subjects them to Medicare rules. The CMS certainly watches how their money is spent, particularly if bad nursing homes will result in greater costs elsewhere in the program, such as increased hospitalization due to infections.Just taking medicare means they are subject to regulations around medicare. Not in day to day business operations. The federal government has no legal authority to regulate that and never should. Scope of power for the federal government is narrowly defined by the Constitution for a reason.