[Federal Register Volume 83, Number 229 (Wednesday, November 28, 2018)]
[Rules and Regulations]
[Pages 61250-61286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25115]



[[Page 61249]]

Vol. 83

Wednesday,

No. 229

November 28, 2018

Part III





Department of Veterans Affairs





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38 CFR Parts 17, 51, and 52





Per Diem Paid to States for Care of Eligible Veterans in State Homes; 
Final Rule

  Federal Register / Vol. 83 , No. 229 / Wednesday, November 28, 2018 / 
Rules and Regulations  

[[Page 61250]]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Parts 17, 51, and 52

RIN 2900-AO88


Per Diem Paid to States for Care of Eligible Veterans in State 
Homes

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This rulemaking adopts as final, with changes, proposed 
amendments to VA's regulations governing payment of per diem to States 
for nursing home care, domiciliary care, and adult day health care for 
eligible veterans in State homes. This rulemaking reorganizes, updates, 
and clarifies State home regulations, authorizes greater flexibility in 
adult day health care programs, and establishes regulations regarding 
domiciliary care, with clarifications regarding the care that State 
homes must provide to veterans in domiciliaries.

DATES: This rule is effective on December 28, 2018.

FOR FURTHER INFORMATION CONTACT:  Dr. George F. Fuller, Chief 
Consultant, Geriatrics and Extended Care Services (10NC4), Veterans 
Health Administration, 810 Vermont Avenue NW, Washington, DC 20420, 
(202) 461-6750. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: On June 17, 2015, VA proposed changes to 
parts 17, 51, and 52 of title 38 Code of Federal Regulations. 80 FR 
34794. VA published technical corrections to the proposed rulemaking on 
June 24, 2015, 80 FR 36305. This final rule amends part 17 by deleting 
provisions that applied to State home hospitals, because there no 
longer are any, and moving to part 51 the other provisions that apply 
to State homes, including State home domiciliary care programs. It 
revises part 51 subparts A, B, and C to eliminate redundancy in the 
regulations governing the payment of per diem to State home nursing 
home, domiciliary, and adult day health care programs by combining 
similar regulations from part 17 and part 52. It amends several 
sections of the nursing home regulations in part 51 subpart D, and adds 
subparts E and F on domiciliary care and adult day health care, 
respectively, to part 51. Because of that, this rule eliminates the 
State home regulations from part 17 and part 52, and combines in part 
51 all the regulations for a State home to establish and maintain 
qualification for receipt of VA per diem payments.
    We invited interested parties to submit written comments on the 
proposed rule on or before August 17, 2015, and we received 32 public 
comments. Several commenters commended and supported revisions that 
reorganize, update, and clarify the regulations, particularly those 
that increase the State homes' ability to emphasize the independence of 
adult day health care participants. VA thanks these commenters for 
their support of the rule. We have responded to the rest of the 
comments recommending changes to the proposed rule under the heading of 
the sections with which the commenters expressed concern.

Technical Correction

    The notice of proposed rulemaking proposed to amend 38 CFR part 51 
under the part heading, ``PART 51--PER DIEM FOR NURSING HOME, 
DOMICILIARY, OR ADULT DAY HEALTH CARE OF VETERANS IN STATE HOMES.'' The 
correct heading of part 51 until this rulemaking becomes final is, 
``PER DIEM FOR NURSING HOME CARE OF VETERANS IN STATE HOMES.'' The 
notice of proposed rulemaking neglected to include amendatory language 
proposing to change the heading of part 51. We are correcting this 
omission by adding that amendatory language and the revised heading of 
part 51 below as amendatory action 3. We have renumbered all subsequent 
amendatory instructions accordingly.

Subpart A--General

51.1 Purpose and Scope of Part 51

    We have changed ``rules'' to ``requirements'' in the sentence of 
Sec.  51.1 beginning, ``Subpart C sets forth requirements governing . . 
. .'' The term ``rule'' is commonly used as a synonym for 
``regulation'' in federal rulemaking, as in the ACTION heading of this 
rulemaking. Avoiding its use in the text of a regulation eliminates a 
possible point of confusion. The term ``requirements'' better describes 
the function and scope of the regulations in subpart C of part 51.

51.2 Definitions

    VA received comments related to the definition of domiciliary care, 
and concerns that the proposed definition, in addition to the standards 
in subpart E of the proposed regulations imposing the entire nursing 
home program regulations on the domiciliary care program, would impose 
unnecessary and costly burdens on domiciliary programs that are 
inconsistent with their purpose and that would replicate nursing home 
care. Several commenters stated some States may have to close their 
domiciliary programs because of these costs. A commenter said that VA's 
proposed definition of ``domiciliary care'' needs to be clearer for the 
State homes to tell whether their programs fit the definition. 
Similarly, others said that States need a clearer definition of what 
domiciliary care is to know whether the per diem rate for that care 
will sustain their programs.
    VA agrees that the application of whole regulations governing the 
nursing home care program to the domiciliary care program, as proposed 
Sec. Sec.  51.300 and 51.350 would have done, would be excessively 
burdensome. We have revised those sections to eliminate the application 
of multiple nursing home provisions to the domiciliary care program. We 
discuss each change from the proposed rule in the discussion of 
Sec. Sec.  51.300 and 51.350 below.
    VA agrees that the definition of domiciliary care in proposed Sec.  
51.2 requires clarification. We have, therefore, added to it a 
description of what constitutes ``necessary medical services'' for 
purposes of State home domiciliary care, which are the services 
described in subpart E of this rulemaking. This updated definition, 
along with the revisions to the proposed domiciliary care requirements 
under subpart E of this rule, described in detail below, allows a user 
to tell whether a State home program fits the definition of domiciliary 
care.
    A commenter said VA may need to clarify the definition of 
domiciliary care regarding whether domiciliary care is a temporary or 
permanent living arrangement so State homes could assess whether their 
programs meet the definition. The commenter said that State home 
domiciliaries offer different types of programs, including retirement, 
independent living, transitional care, or permanent care programs. VA 
received other comments raising similar concerns about State homes' 
abilities to provide transitional care in domiciliaries under the 
proposed rules.
    VA declines to change the definition of domiciliary care to 
differentiate between temporary and permanent services. We believe the 
revised definition provides necessary guidance, and also provides 
flexibility so that State homes can operate many variations of 
domiciliary care within the definition, including transitional 
services, as long as the State home meets VA's standards for per diem 
payment while the resident resides in the home. The changes to the 
definition of domiciliary care in Sec.  51.2 and to the domiciliary 
requirements in subpart E of this rulemaking should resolve the issues 
raised by this comment. We

[[Page 61251]]

therefore make no changes based on these comments.
    Although not defined in this section, we noticed the terms 
``treatment plan,'' ``care plan,'' and ``plan of care'' are used 
inconsistently throughout the proposed regulations to refer to the same 
thing: The regimen of care based on a comprehensive assessment that is 
offered in all State home programs of care. We changed all instances of 
these terms to ``comprehensive care plan,'' which is also consistent 
with the regulations in part 51 that are not changed by this final 
rule.
    We are also removing ``primary physician'' from the definition 
proposed as ``primary physician or primary care physician,'' and 
changing all references to ``primary physician'' to ``primary care 
physician'' throughout part 51. Proposed part 51 had used each about 
the same number of times. Though they mean the same thing, we think 
this part would be clearer if the definition defines a single term and 
uses that term consistently.

Subpart B--Obtaining Recognition and Certification for per Diem 
Payments

51.20 Recognition of a State Home

    In Sec. Sec.  51.20 and 51.30 of the proposed rule, we used some 
terms that make sense applied to residential programs--nursing home and 
domiciliary--that do not make sense applied to adult day health care 
programs. For example, ``beds'' is a useful term when referring to the 
number of residents in a nursing home care program or a domiciliary 
care program, but not when referring to the number of participants in 
an adult day health care program, which has no overnight operations. We 
have, therefore revised Sec. Sec.  51.20 and 51.30 to speak of 
``capacity'' of a program or facility, rather than of ``beds.''
    We are changing proposed Sec.  51.20(b) to explicitly include 
applicable requirements in subpart C in the list of requirements and 
standards that VA may evaluate in a survey of the State home. Subpart C 
contains requirements regarding eligibility, payment rates, and payment 
procedures that apply to State home programs of care. We do not 
consider this a substantive change, because State homes would clearly 
need to comply with subpart C under the proposed rule. This change 
makes Sec.  51.20(b) complete regarding the scope of surveys.
    We are clarifying proposed Sec.  51.20(b)(3)(ii). As proposed, the 
paragraph provided for the State home to respond to a medical center 
director's recommendation to the Under Secretary for Health to not 
recognize a state home and to submit additional evidence with that 
response. The paragraph neglected to identify to whom the State home is 
to submit the response or additional evidence. We are adding language 
to the end of Sec.  51.20(b)(3)(ii) providing that the State's 
submission of a response to a recommendation to not recognize a State 
home is to the Under Secretary for Health. This is consistent with 
current Sec.  51.30(d), which provides for appeal from a recommendation 
against recognition, and inclusion of additional material with that 
appeal. This is not a change from the current regulation; it merely 
fills a gap in the proposed regulation.
    We are further clarifying paragraph (b)(3)(ii) and multiple other 
proposed provisions of part 51 that measure time by qualifying the 30 
days as ``calendar'' days. As proposed, part 51 inconsistently 
qualified the measure of time. We believe this inconsistency invites 
confusion. Qualifying time in calendar days generally provides 
certainty to the time allowed in provisions that prescribe deadlines. 
There are three exceptions in part 51 that measure time in ``working'' 
days. These codify long-standing practice with which VA and the State 
homes are accustomed. These are Sec. Sec.  51.30(d)(1)(iii), time to 
provide a corrective action plan; 51.320(a)(4), time for a domiciliary 
care program to report a sentinel event; and 51.430(a)(3), time for an 
adult day health care program to report a sentinel event.
    We are clarifying proposed Sec.  51.20(c). As proposed, the 
paragraph provided, ``After receipt of a recommendation from the 
Director, the Undersecretary for Health will award or deny recognition 
based on all available evidence.'' Though it seems implicit, the 
proposed regulation does not explicitly say that ``all available 
evidence'' included any evidence the State home submits during the 30 
calendar days the preceding paragraph allows for submission of a 
response or additional evidence. To make the regulation explicit, we 
are adding to paragraph (c), following ``Director,'' the following: 
``and allowing 30 calendar days for the state to respond to the 
recommendation and to submit evidence . . .'' As revised, the sentence 
reads, ``After receipt of a recommendation from the Director, and 
allowing 30 calendar days for the state to respond to the 
recommendation and to submit evidence, the Under Secretary for Health 
will award or deny recognition based on all available evidence.'' We 
are also adding ``in writing'' at the end of the second sentence of 
paragraph (c) because the current regulation, Sec.  51.30(e), requires 
the Under Secretary's decision to be written. We omitted this 
requirement from the proposed regulation.
    We are removing the second sentence of proposed Sec.  51.20(d)(2), 
which provided that changes in the use of particular beds between 
recognized programs of care and increases in capacity that are not the 
result of the expansion of the size of a home or relocation to a new 
facility will not require recognition. Those changes are the subject of 
Sec.  51.30. We are adding ``or capacity'' following ``size'' in the 
remaining sentence of this paragraph to be clear that a recognized 
state home only needs a new recognition if there is an expansion in the 
physical size of the home, increased in the number of persons served, 
or relocation to a new facility. So, we do not need to explain in Sec.  
51.20 that the section on certification, Sec.  51.30, addresses any 
changes that do not involve such an expansion or relocation. This is 
not a substantive change.

51.30 Certification of a State Home

    In Sec.  51.30(a) and throughout part 51 wherever proposed, we are 
changing ``within'' as it pertains to numbers of days to ``no later 
than.'' We believe one can be unsure whether ``within'' includes or 
excludes the last day of the period. ``No later than'' more clearly 
includes the last day of the period. If the regulation provides, as in 
Sec.  51.30(a) for example, that something be done no later than 450 
days after an event one can be sure on day 451 the deadline has been 
missed.
    VA is eliminating from proposed Sec.  51.30(c) the provisions that 
would have allowed precertification when State homes switch capacity 
between programs of care or increase capacity in a program of care. On 
further consideration, we have determined that the regular surveys 
described in paragraph (b) of this section are frequent enough, and the 
provisional certification process holds the State homes accountable 
enough, that the precertification process adds complexity with little 
benefit. Deleting it eliminates an administrative burden on the State 
homes and on VA. We are, therefore, deleting the precertification 
provisions in proposed Sec.  51.30(c)(1).
    One commenter applauded proposed Sec.  51.30(c)(2), which 
eliminated the requirement that VA perform a new survey of a program 
upon reduction of the capacity of that program. We have retained this 
provision, but have redesignated it as Sec.  51.30(c). For 
administrative convenience, in this final rule we have changed the 
destination to

[[Page 61252]]

which the State home must send its report regarding decreases in 
capacity to the Office of Geriatrics and Extended Care in VA Central 
Office, from the Director of the VAMC of jurisdiction, as proposed, 
which will keep the regulations consistent with longstanding practice.
    VA is clarifying the function and purpose of the provisional 
certification provisions of proposed paragraph (d)(1). The paragraph 
serves two purposes: (1) To allow the State home to receive per diem 
payments while correcting deficiencies a survey reveals, and (2) to 
ensure VA does not pay per diem if a survey reveals a deficiency that 
is an immediate hazard to health or safety so great, and the need to 
remediate so urgent, it is unreasonable to continue per diem payments 
during the time until the next survey.
    Specifically, VA is amending proposed Sec.  51.30(d)(1)(ii), which 
would not allow VA to grant a provisional certification if the State 
home is deficient in a standard that would jeopardize the health or 
safety of any resident or participant. Because almost all of the 
standards in these regulations are aimed at promoting the health and 
safety of State home residents and participants, the regulation as 
proposed would prevent VA from issuing most provisional certifications, 
frustrating the purpose of provisional certifications. Though some 
commenters favored imposing the strictest possible State home 
compliance with all regulations, VA believes a provisional 
certification scheme resulting in frequent denial of provisional 
certification is not in the best interest of State home residents. 
Consequently, we clarify that the deficiencies for which VA will grant 
provisional certification are only those that will not jeopardize the 
health and safety of Veterans before the State home can remedy them. We 
are, therefore, adding the word ``immediately'' so that this provision 
reads, ``None of these deficiencies immediately jeopardize the health 
or safety of any resident or participant.''
    VA is eliminating the provisions that were proposed as Sec.  
51.30(d)(3), which detailed how VA would issue additional provisional 
certifications to a State home that already received a provisional 
certification. VA has determined that the proposed procedure is 
inconsistent with VA's practices of working with State homes on 
corrective action plans to ensure the programs are brought into 
compliance with these regulations under one provisional certification. 
The provisional certification procedures in this final rule are 
complete without that proposed provision.

51.31 Surveys for Recognition and/or Certification

    We have changed proposed Sec.  51.31(b)(1). We proposed, as a 
requirement for VA to conduct a recognition survey, that a State home 
nursing home care program or domiciliary care program must have at 
least 21 residents or have a number of residents consisting of at least 
50 percent of the resident capacity of the home. We have reduced the 
residency number requirement from 21 to 20, while keeping the 50 
percent alternative. We are making this change to facilitate 
recognition of homes using the small house model which is based on 
facilities of 20 beds.
    We have removed ``the Assistant Deputy Under Secretary for Health 
(10N);'' from the list in paragraph (c) of persons the director of the 
VA medical center of jurisdiction must notify upon finding an immediate 
threat to safety in a State home. Through reorganization, Veterans 
Health Administration no longer has an officer with exactly that title. 
The other listed VA offices are sufficient to accomplish the necessary 
oversight of State homes. Consequently, we remove the named VA officer 
without substitution of another.

Subpart C--Requirements Applicable to Eligibility, Rates, and Payments

    We are revising the proposed heading of subpart C by inserting 
``Requirements Applicable to'' before ``Eligibility, Rates, and 
Payments'', to read, ``Subpart C-- Requirements Applicable to 
Eligibility, Rates, and Payments''. As revised, the heading describes 
the function and scope of subpart C better than the proposed heading.

51.40 Basic per Diem Rates

    In proposed subpart F, VA proposed changes to requirements for 
State home adult day health care to reduce the requirements for medical 
supervision in the programs. VA received comments that VA should 
establish a two-tier per diem payment system for adult day healthcare 
programs under Sec.  51.40(a) because of the higher cost of providing 
medical supervision and the lower cost of programs that do not. The 
commenters said that failure to provide separate rates for programs 
that offer medical supervision and for those that do not will 
negatively affect State homes providing adult day health care services 
with medical supervision and the veterans these programs serve. They 
noted the current medical supervision style of programs has a 
significant track record of keeping veterans out of hospital emergency 
rooms and hospitalizations; they care for veterans who would otherwise 
be institutionalized in a nursing home.
    We explained in the proposed rule that VA would not pay different 
rates of per diem to State home adult day health care programs that 
provide medical supervision than to those that do not. We proposed to 
expand the definition of adult day health care, which had previously 
allowed only for the medical model of care, to afford State homes the 
flexibility to offer a social model of care, and thereby expand 
availability of adult day health care to more Veterans throughout the 
country. Though a State home may still choose to provide medical 
supervision, and must meet the standards in Sec.  51.445 if it does, 
the method for calculating per diem payments will remain the same 
regardless of the type of care provided. If the veteran needs more 
medical care than the adult day health care program can provide, the 
State home must transfer the veteran to another appropriate care 
program. Even if VA were to implement, under 38 U.S.C. 1741, different 
rates for adult day health care programs that provide the medical model 
of care, the payment would still be subject to the statutory limit of 
no more than one half of the cost of the veteran's care. 38 U.S.C. 
1741(b). We point this out on the assumption that the commenter is 
seeking a payment tier that provides higher payments for medical model 
participants than the current per diem payment, and not a lower payment 
tier for social model adult day health care participants. Because the 
statute describes the maximum basic per diem payment as a percentage of 
the cost of care, and because we see no value in tiered payments merely 
for the sake of tiering, we make no change based on this comment.
    We note that since the publication of VA's proposed rule in June 
2015, the President signed into law the State Veterans Home Adult Day 
Health Care Improvement Act of 2017. VA is working to implement this 
new authority; if any further revisions in these regulations are needed 
because of this recently enacted legislation, VA will make them through 
subsequent rulemaking.
    Another commenter addressed the cost of providing ``primary care, 
medical services, and preventative care to domiciliary residents while 
restricting the payments to `less than one half of the cost of care' '' 
as inequitable and unrealistic. The commenter asserted the current 
reimbursement structure does

[[Page 61253]]

not always cover the cost of the required care, and that the proposed 
new regulations would introduce more bureaucracy and ``paper work'' 
costs and shift the cost and much of the responsibility for the health 
care of domiciliary veterans from VA to the State homes.
    By law, the basic per diem rate cannot exceed one-half the cost of 
the veteran's care in the State home. As such, per diem payments are 
not intended to serve as a reimbursement for all the costs of the care 
provided to veterans. We make no change based on this comment.
    The per diem program does not shift costs of care or the 
responsibility for providing health care from VA to the State homes. 
Domiciliary care has long included all ``necessary medical services'' 
which essentially includes all outpatient care. See Sec.  17.30(b). So, 
by limiting the care that State home domiciliaries are required to 
provide, this rule could be seen as shifting the cost and 
responsibility for most medical services to VA. Regarding additional 
bureaucratic paper-work costs due to this rulemaking, the commenter did 
not identify any specific provisions that would have that effect. We 
refer the commenter to the discussions throughout this supplementary 
information describing multiple changes from the proposed rules this 
final rule makes to reduce administrative and other costs. For example, 
see the discussion of changes from proposed Sec.  51.300. We make no 
change based on this comment.
    The same commenter expressed difficulty keeping track of the 
services covered by the different per diem payments. The commenter 
expressed the desire that VA publish a comprehensive list of services 
covered by the nursing home, domiciliary, and adult day care per diem 
payments for veterans with service-connected disabilities rated 70 
percent or 100 percent disabling.
    Per diem under 38 U.S.C. 1741 is paid under a VA grant program. VA 
makes the payments to the States to support the care of veterans in 
State homes; it is not ``coverage'' for specific services, like 
insurance. The States must meet certain standards as a condition of 
receiving VA per diem to ensure the State home provides for the health, 
safety, and well-being of veterans in its care. The rate of per diem 
paid for the nursing home care of veterans with service-connected 
disabilities rated 70 percent or more is the subject of Sec.  51.41, 
Contracts and provider agreements for certain veterans with service-
connected disabilities. VA published a notice of proposed rule; 
correction and clarification, 80 FR 36305 (June 24, 2015), 
acknowledging that VA omitted Sec.  51.41 from the initial notice of 
proposed rulemaking proposing the rules this rulemaking finalizes. The 
notice of correction stated VA is not amending Sec.  51.41 in this 
rulemaking, consequently comments based on it are beyond the scope of 
this rulemaking. We make no changes based on this comment.
    Commenters objected that VA proposed to apply the same rule to 
payment of per diem for veterans absent from State home domiciliaries 
as it applies to payment of per diem for veterans absent from State 
home nursing homes. As proposed, Sec.  51.40(c) would allow VA to pay 
per diem for a day without an overnight stay if the State home 
domiciliary had an occupancy of rate of 90 percent or greater on that 
day. The per diem payments would be limited to the first 10 consecutive 
days the veteran was admitted to any hospital and the first 12 days in 
a calendar year for absences other than for the purpose of receiving 
hospital care. Specifically, the commenters objected to the requirement 
that the State home domiciliary care program be filled to 90 percent of 
capacity before VA will pay per diem for a veteran's absence. One 
comment said the requirement would have a major financial impact on 
State home domiciliaries, and that the limit for payments of 12 days in 
a calendar year for absences other than for hospital care would 
adversely affect the residents' quality of life. One commenter 
requested VA allow 24 days of leave other than for hospital care, 
arguing this would be good for the resident and consistent with the 
capacity for independence of domiciliary residents. Another asserted 
the regulation was vague as proposed and needed clarification. The 
commenter noted the proposed regulation omitted the ``original'' 
requirement that a resident not be absent from a State Home for more 
than 96 consecutive hours for the Home to receive per diem for that 
veteran, but the proposed section now states that per diem will be paid 
only for a veteran who has an overnight stay, or if the State Home has 
an occupancy rate of 90 percent or greater on that day. This commenter 
pointed out that domiciliary residents are independent and may choose 
to spend time away from the State home, which needs to guarantee their 
accommodations will be available when they return and should be 
reimbursed for that. These commenters said VA should continue the ``96-
hour'' rule for payment of per diem during absences from the 
domiciliary for reasons other than hospitalization.
    VA agrees that domiciliary residents require a different level of 
care and have more independence than nursing home residents, and 
imposing the same requirements for absences would impose an unfair 
burden on domiciliaries. State home domiciliary care programs are 
typically below 90 percent of capacity, but VA nonetheless believes 
that it is important to pay per diem during short absences to ensure 
that veterans who choose to take brief absences do not lose their 
spaces in State home domiciliaries. We agree that the 12-day cumulative 
absence rule is impracticable and overly burdensome for domiciliary 
care programs for the same reasons. In fact, even a 24-day rule, as one 
commenter requested, would allow less time away per year than the 96-
hour rule some commenters recommended. Consequently, we are removing 
both the 90 percent and the 12-day requirements from the final rule. We 
are instead codifying the 96-hour rule for absences from domiciliaries 
in Sec.  51.40(c), as it is currently in VHA Directive 1601SH.01. Under 
this rule, VA will pay per diem for any absence from the domiciliary of 
96 or fewer consecutive hours, unless the absence is for hospital care 
at VA expense. VA will not pay per diem for any absence that lasts 
longer than 96 hours.
    To effect these changes, we are revising the paragraph into two 
paragraphs: (c)(1), ``Nursing homes'' and (c)(2), ``Domiciliaries.''

51.41 Contracts and Provider Agreements for Certain Veterans With 
Service-Connected Disabilities

    As published in a notice of correction and clarification, 80 CFR 
36305 (June 24, 2015), this rulemaking as proposed inadvertently 
omitted instructions for Sec.  51.41. VA did not intend to propose any 
changes to that section, and we make none in this rulemaking. We have 
provided amendatory language for subpart C to ensure inclusion of Sec.  
51.41 in 38 CFR part 51, and have added Sec.  51.41 to the table of 
contents.

51.42 Payment Procedures

    As proposed, Sec.  51.42(a) read as a 147-word sentence. We have 
revised it to read as three sentences for clarity. We have also revised 
the proposed note to paragraph (a)(1)(i), redesignated ``Note 1,'' to 
clarify who must complete the financial disclosure and that adult day 
health care participants are not to complete the financial disclosure, 
but they must sign the form to acknowledge financial responsibility. As 
revised, the note also makes clear that VA will reject

[[Page 61254]]

the form as incomplete if submitted without the required signature.
    VA had proposed expanding the deadline for VA to receive the forms 
from the State home identified in this section from 10 days to 12 days. 
The statute only allows 10 days, and we have no authority to allow a 
longer time. 38 U.S.C. 1743. VA will therefore maintain the 10-day 
deadline in this final rule by changing 12 to 10 in paragraph (b)(3) of 
this section. As discussed above, we are qualifying the time as 10 
``calendar'' days and defining the time limit as ``no later than,'' 
rather than ``within'' as proposed, and adding ``after care began'', 
consistent with the statute. We have also made minor technical edits to 
this section. We have changed the heading of paragraph (b)(2) of this 
section by deleting ``or precertified,'' because, as described above, 
Sec.  51.30(c) will not establish a precertification procedure. We have 
deleted the first sentence of paragraph (b)(2) of this section for the 
same reason.

51.51 Eligible Veterans--Domiciliary Care

    One commenter said that proposed Sec.  51.51(b)(7) is ambiguous in 
requiring that a veteran must be able to ``[s]hare in some measure, 
however slight, in the maintenance and operation of the State home'' to 
be eligible for VA per diem payments, and this provision could violate 
the protection from involuntary servitude of the thirteenth amendment 
of the U.S. Constitution.
    We disagree with the assertion that paragraph (b)(7) compels 
involuntary servitude. Residency in the State home domiciliary care 
program is itself voluntary. Any resident may leave. Paragraph (b)(7) 
describes an ability that, with the other eligibility criteria, ensures 
the enrollees on whose behalf VA pays per diem are appropriately in a 
domiciliary care program, and that VA pays the State home domiciliary 
care per diem only for such residents. Moreover, under revised Sec.  
51.310(c), the veteran is consulted and must agree to the work 
arrangement described in his or her comprehensive care plan, and Sec.  
51.300(b) requires that the resident be paid for work that the State 
home would need to pay others to perform. Together these provisions 
protect residents from involuntary servitude and from a State home 
otherwise taking unfair advantage of the resident through its work 
program.
    Based on this comment, however, we are revising paragraph (b)(7) to 
read, ``Participate in some measure, however slight, in work 
assignments that support the maintenance and operation of the State 
home.'' This makes clear the eligibility criteria include the ability 
to personally participate in the maintenance and operation of the State 
home. The addition also harmonizes this eligibility criterion with the 
role of resident work in the domiciliary care program as prescribed in 
Sec. Sec.  51.300 and 51.310. The specific work the resident chooses 
will be by agreement with the interdisciplinary team that develops the 
resident's comprehensive care plan, and the resident will be paid a 
competitive wage if the facility would otherwise pay a non-resident for 
such work. There is flexibility in how this may be implemented, as 
reflected in Sec. Sec.  51.300(b) on residents' rights and behavior and 
51.310(c) on comprehensive care plans, respectively.
    Multiple commenters commented the State home should pay residents 
for work. Another objected to application through proposed Sec.  51.300 
of the nursing home regulation, Sec.  51.70(h)(1), permitting a 
resident to refuse to work. This commenter asserted the State home 
should require each resident to work. In consideration of these 
comments we are revising proposed Sec.  51.300 to require each 
resident's comprehensive care plan to specify whether a resident's work 
for the domiciliary is paid or unpaid.

51.52 Eligible Veterans--Adult Day Health Care

    We have made non-substantive technical revisions to paragraph Sec.  
51.52(d)(3)(ii). As proposed, this provision may have been interpreted 
as requiring a minimum of 24 visits, 12 outpatient and 12 emergency, to 
be considered as a high user of medical services and thereby establish 
eligibility for adult day health care per diem payments. We intended 12 
visits total, whether outpatient, emergency, or some combination, and 
have changed the provision in this final rulemaking to clarify that.

51.58 Requirements and Standards Applicable for Payment of per Diem

    We are changing the heading of Sec.  51.58, as shown, consistent 
with the changed heading of subpart C, discussed above, and other 
references to subpart C in this part. Similar to the change described 
above in Sec.  51.20(b), we are changing proposed Sec.  51.58 to make 
explicit in the introduction that State homes must meet the 
requirements of subpart C to receive per diem payments. Subpart C 
contains the eligibility requirements, payment rates, and payment 
procedures that apply to all State home programs of care. Although we 
do not consider this a substantive change, because the provisions of 
subpart C clearly apply to State homes receiving per diem, Sec.  51.58 
would be incomplete without it.

51.140 Dietary Services

    This rulemaking makes a technical amendment to Sec.  51.140(a)(2) 
that was not in the proposed rule. The paragraph refers to the 
``American Dietetic Association,'' which changed its name to the 
``Academy of Nutrition and Dietetics.'' This rulemaking updates that 
name.

Subpart E--Standards Applicable to the Payment of per Diem for 
Domiciliary Care

    VA received comments asking VA to collaborate with national 
associations representing State homes to revise the proposed 
regulations regarding domiciliary care and to retain the prior 
domiciliary rules in the interim, rather than implement the proposed 
rules.
    VA is grateful to the State homes, and to all parties who submitted 
comments on this rulemaking. The rulemaking process we have followed 
allows all members of the public to have a fair opportunity to 
participate in the rulemaking process, as the Administrative Procedure 
Act requires. 5 U.S.C. 553. VA has considered all comments it received, 
including the comments about the effects of the proposed domiciliary 
regulations submitted by national associations and individual State 
homes, and is making substantial changes to the domiciliary regulations 
in this final rulemaking. We therefore decline to retain the prior 
rules on per diem payments to domiciliaries while developing new 
regulations, but we welcome continuing feedback and opportunities to 
work with the State homes to improve services to veterans.

Sec.  51.300 Residential Rights and Behavior; State Home Practices; 
Quality of Life

    VA received a number of comments about Sec.  51.300, which, as 
proposed, would have applied to State home domiciliaries the 
requirements of Sec. Sec.  51.70, 51.80, 51.90, and 51.100. These 
regulations provide standards that apply to State home nursing home 
resident rights; admission, transfer and discharge rights; resident 
behavior and facility practices; and quality of life. In response to 
these comments and for other reasons, we have revised proposed 51.300 
so it does not apply to the domiciliary care program all of the nursing 
home regulations we proposed to apply. We have changed the introduction 
to Sec.  51.300 to specify which provisions of the nursing home 
sections will not apply to the

[[Page 61255]]

domiciliary care program. Discussion of the specific comments and 
changes to Sec.  51.300 follow.
    Five commenters opined that compliance with Sec. Sec.  51.70, 
51.80, 51.90, and 51.100 may seem reasonable as they pertain to 
veterans' treatment and rights. They asserted, however, that compliance 
with these sections also imposes additional, extensive ``nursing home'' 
standards on the domiciliary programs, creating new requirements that 
are not feasible under current operation and staffing models. The 
commenters noted, for example, that Sec.  51.70 contains 14 major 
sections and multiple subsections of requirements, whereas the existing 
domiciliary care program regulations have only one standard ``(13 
Quality of Life).'' The commenters asserted the other sections to which 
Sec.  51.300 refers are similarly burdensome, citing as another example 
the Sec.  51.100 requirement that social workers meet specific 
qualifications and that the domiciliary meet specific staffing 
requirements.
    We deduce that the commenters' citations of various ``existing 
regulations,'' e.g., ``13 Quality of Life,'' refer to provisions of the 
VA Guide for Inspection of State Veterans Homes: Domiciliary Care 
Standards (Nov. 26, 1986) [hereafter 1986 Guide], because the citations 
are, verbatim, to headings of standards in the 1986 Guide. We disagree 
with assertions that the proposed regulations have many more provisions 
than the 1986 Guide, and with the implicit argument that more 
provisions means a greater burden of compliance. First, the commenters 
comparison of Sec.  51.70 with the 1986 Guide, which incidentally does 
not comprise regulations, misstated the differences. Section 51.70 is 
one section comprising 14 paragraphs, (a)-(n), which each have multiple 
provisions. Section 13 of the 1986 Guide, ``Quality of Life,'' 
comprises one section with six standards, each with one to four 
indicators of compliance, which in turn each has as many as 13 
elements, and each standard one through six has a corresponding 
guideline paragraph. We further disagree that the number of provisions 
defines the burden of compliance. The number of provisions, as the 
commenters identify them, is an organizational device to aid 
readability. It does not inherently correlate with the burden of 
compliance.
    The commenters also expressed particular concern about the cost of 
applying these sections to domiciliary care programs that offer 
primarily transition services. Commenters said the proposed rules would 
have an adverse financial effect on the domiciliary programs, including 
potential closures, which would have an especially negative effect on 
the homeless population that some domiciliary care programs widely 
serve. Commenters said the proposed rules would treat otherwise 
homeless residents as patients and would medically institutionalize 
them, whereas the traditional domiciliary model encourages self-
reliance. Some commented that nursing home standards would increase the 
nursing requirements for assisted-living domiciliaries. Some said that 
these requirements amounted to an unfunded mandate. Some said VA should 
either increase the per diem payment for domiciliary care, or eliminate 
or reduce the requirements.
    We disagree that any requirement in this rulemaking is an unfunded 
mandate, even if compliance with some provisions increases a State's 
costs to run its program. An unfunded mandate, or a ``Federal 
intergovernmental mandate'' as defined in the Unfunded Mandates Reform 
Act of 1995, is, in pertinent part, ``any provision in legislation, 
statute, or regulation that (i) would impose an enforceable duty upon 
State, local, or tribal governments--except (I) a condition of Federal 
assistance; or (II) a duty arising from participation in a voluntary 
Federal program.'' 2 U.S.C. 658(5). No Federal law imposes an 
enforceable duty on any the States to have a State home. VA's per diem 
program is a benefit the United States affords veterans through the 
States. This rulemaking provides conditions of this VA assistance. Each 
State participates voluntarily. The cost of qualifying for VA per diem 
payments to State homes is not an unfunded mandate; it is simply a 
condition of Federal assistance or a duty arising from participation in 
a voluntary Federal program. We make no change based on this comment.
    VA agrees that certain of the requirements we proposed in Sec.  
51.300 should not be applied to State home domiciliaries, and we have 
made a number of changes to that section in response to the commenters' 
recommendations. The standards VA will require State home domiciliary 
care programs to meet under this final rule are those we have 
determined are essential to the health, safety, and well-being of the 
residents and that will enable the State homes to continue providing 
services that foster veterans' independence. To that end, VA will apply 
some provisions of Sec. Sec.  51.70, 51.80, 51.90, and 51.100 to 
domiciliaries, but we are excluding some and establishing more suitable 
standards in the place of certain paragraphs of each. From Sec.  51.70, 
we are excluding Sec.  51.70(b)(9), (h)(1), and (m); from Sec.  51.80 
we are excluding Sec.  51.80(a)(2), (a)(4), and (b); and from Sec.  
51.100 we are excluding Sec.  51.100(g)(2), (h), and (i)(5)-(i)(7). We 
have added provisions using the same or substantially similar headings 
as the excluded paragraphs and added provisions in language similar to 
the excluded provision, adapted and tailored to the needs of the 
domiciliary care program. For the most part, these changes implement 
changes commenters recommended or eliminate burdens commenters 
identified.
    Some commenters approved of the proposed application of nursing 
home regulations to domiciliary care programs. They urged VA to apply 
all nursing home regulations to domiciliary care programs. Some 
suggested specific changes to various provisions of Sec. Sec.  51.70 
and 51.100 as we proposed to apply them to domiciliary care programs. 
The suggested amendments are addressed under the headings for those 
provisions. One suggested a substantial rewrite of Sec. Sec.  51.70 and 
51.100, which we discuss under the Other Issues heading below.
    A description of changes from the proposed regulations follows.

51.300(a) Notice of Rights and Services--Notification of Changes

    VA received comments that Sec.  51.70(b)(9), Notification of 
changes, should not apply to domiciliary care program residents. The 
comments said that State homes do not currently notify families or 
legal representatives of changes to the domiciliary residents' medical 
status or room assignments. They noted that the State home often asks 
the residents to move from rooms with multiple residents to single 
rooms based on availability and seniority, and there is no need to 
inform family members in writing of such a change. One commenter 
further noted, ``[T]here is no need to notify family members of changes 
in their medical conditions against their will in violation of their 
Health Insurance Portability and Accountability Act rights,'' and 
domiciliary residents are independent enough to oversee their own 
affairs. We interpret the comment referencing HIPAA to mean, if a State 
home were to notify family members of changes in the resident's medical 
condition over the resident's objection, that notice would violate the 
resident's rights under HIPAA, and therefore the proposed notice 
requirement violates HIPPA.
    We agree that the requirement to notify a resident's legal 
representative or interested family member of changes to

[[Page 61256]]

the resident's medical status or room assignment as Sec.  51.70(b)(9) 
requires is not necessary for domiciliary care program residents for 
the reasons the commenters stated. We do not address whether the 
proposed notice requirement would violate HIPAA because we are 
eliminating the requirement to notify certain people. Instead, we have 
added a right to notice provision in Sec.  51.300(a). In consideration 
of the comments for and against notice of certain outside persons, we 
are making changes intended to balance these conflicting concerns. 
Paragraph (a) of this section will provide that the domiciliary 
resident will have the right to decide whether to have the State home 
notify other people of changes to the resident's medical status or room 
assignment.

51.300(b) Work

    VA received comments objecting to applying to domiciliaries via 
proposed Sec.  51.300 the nursing home rule that allows residents to 
refuse to work in Sec.  51.70(h)(1). A commenter said that work 
programs allow residents to participate in their independent living 
communities and provide valuable therapy and skills for residents who 
will leave the facility. In contrast, VA also received comments that 
supported the proposed right to refuse to work for domiciliary 
residents.
    We agree that sharing in some portion of the work to maintain the 
domiciliary is an essential part of domiciliary care programs. By 
longstanding practice, in the absence of comprehensive State home 
domiciliary regulations, State home domiciliary care programs have 
followed the same work requirement that applies to eligibility for VA's 
domiciliary care program in Sec.  17.46(b). As described above, VA has 
adopted a requirement in Sec.  51.51(b)(7) that to be eligible for per 
diem payments for State home domiciliary care the veteran must be able 
to participate in some measure, however slight, in work assignments 
that support the maintenance and operation of the State home. We have, 
therefore, also changed Sec.  51.300 to eliminate the nursing home rule 
regarding the right to refuse work that VA had proposed to apply to 
State home domiciliary residents. As revised, Sec.  51.300(b) now 
states explicitly, in part, ``The resident must participate, based on 
his or her ability, in some measure, however slight, in work 
assignments that support the maintenance and operation of the State 
home.'' To ensure that the work has therapeutic value, Sec.  51.300(b) 
also requires that the State home have a written policy to implement 
the work requirement, that each resident's comprehensive care plan 
describe the work the resident will perform, that the facility 
consulted with and the resident agrees to the work arrangement 
described in the comprehensive care plan, and that, if the resident is 
paid for the work he or she performs, payment will be at wages that 
meet or exceed the prevailing wages for similar work in the area. We 
have also included a provision to encourage the resident's 
participation in vocational and employment services, in addition to 
performing work.
    VA received a comment saying that prevailing wages are not 
currently paid for participation in work therapy or volunteer programs. 
It's unclear whether the commenter means that State home domiciliaries 
should have authority to pay residents some other wage, or whether they 
should have authority to not pay residents for their work. VA believes 
a resident may perform volunteer work designed for its therapeutic 
value, even if the nature of the work is not one that an outside worker 
would typically be contracted to perform. VA also believes, however, 
that domiciliary residents are entitled to fair payment for the work 
they perform for the maintenance and operation of the State home if the 
home would otherwise hire non-residents to do the work. This 
distinction protects the residents from being used under the guise of 
therapy to reduce the State homes' operating costs by substituting 
residents' labor for labor it would ordinarily hire at the prevailing 
wage in the local labor market. VA applies similar rules regarding work 
therapy to its own domiciliary and nursing home residents, and we see 
no difference between VA and State home programs to suggest residents 
should be paid different wages when doing work for which the State 
homes must pay. To make clear that State homes must pay residents the 
prevailing wage to perform work the State home would have otherwise 
hired non-residents to perform, we revised paragraph (b)(3) to read as 
follows: ``Compensation for work for which the facility would pay a 
prevailing wage if done by non-residents is paid at or above prevailing 
wages for similar work in the area where the facility is located''.
    VA received comments saying the domiciliary residents should be 
compensated for all work they perform. VA disagrees; the work 
requirement does not preclude unpaid volunteer work, such as keeping 
one's room orderly or other housekeeping chores ordinarily to be 
expected of persons sharing a residence.
    One commenter asserted VA's State home per diem regulations amount 
to a contract between State homes and VA requiring that State homes pay 
veterans Federal contract wages. The commenter cites an invalid World 
Wide Web address, https://www.dol.gov/ofccp/OFCCPRecoveryActPlan.htm, 
apparently referring to the Department of Labor Office of Federal 
Contract Compliance Programs (OFCCP). State home compliance with VA per 
diem regulations are not subject to the oversight of the Department of 
Labor OFCCP. VA regulations on State home domiciliary residents' work 
requirements are not Federal contracts, either between VA and the State 
homes or between VA and the residents, and they do not subject the 
States to Federal contract law. We make no change based on this 
comment.

51.300(c) Married Couples

    We received comments objecting to the proposed application to the 
domiciliaries of the nursing home requirement from Sec.  51.70(m), 
which provides married couples have the right to share a room if they 
live in the same facility and both agree. One commenter noted that it 
operates one of the oldest State homes in the country and lacks the 
space or proper facilities to provide married living quarters in the 
domiciliary, and to do so would need renovations and the possible 
displacement of some unmarried residents. In contrast, one commenter 
supported the requirement that State home domiciliary care programs 
receiving VA per diem payments must provide shared living quarters for 
married veteran residents who wish them and who each meet the 
eligibility criteria for the program.
    We agree that buildings might not always be able to accommodate 
married living quarters; however, there are ways that the State Home 
can make accommodations for married couples to have private space, even 
if temporarily. To accommodate the physical space limitations of 
certain State homes, but establish responsibility for programs to honor 
such requests to the extent possible, we have added Sec.  51.300(c). 
This paragraph restates Sec.  51.70(m), inserting ``if space is 
available within the existing facility'' after ``has the right'' and 
adding the following sentence: ``If the State home determines existing 
space is not available to allow married residents to share rooms, the 
State home will make accommodations for the privacy of married 
residents.''

51.300(d) Transfer and Discharge

    We received comments that State homes should have a concise 
procedure for discharge of residents to prevent

[[Page 61257]]

arbitrary discharge at the whim of management. One commenter stated 
there needs to be reasons for discharge and a right to contest the 
discharge in a speedy way. The commenter was particularly concerned 
about immediate discharges without any mechanism for immediate review, 
resulting in the resident having to abandon property and even personal 
effects. The commenters said a VA representative as well as a resident 
should be part of the process to ensure that residents' rights are not 
being violated. This comment pertains to the application of Sec.  
51.80, Admissions, transfer and discharge rights, to domiciliary care 
programs, under proposed Sec.  51.300.
    We agree that State home domiciliaries must have a clearly 
identified process for admissions, transfers, and discharges, and we 
have amended the introductory paragraph of Sec.  51.300 to require the 
State home domiciliary have a written policy on the topic. 
Additionally, we have created Sec.  51.300(a) to require the facility 
management to immediately inform the resident when there is a decision 
to transfer or discharge the resident, and a new paragraph (d)(6) to 
require the notice to include the resident's right to appeal and the 
contact information for the State long-term care ombudsman. These 
changes to the final rule give the residents a more defined process for 
discharge. We understand the commenter's reference to a VA 
representative to mean a VA employee. Involving a VA employee in this 
process would impose an unnecessary burden on State homes. We therefore 
make only the changes described based on that comment.
    We received a comment objecting to the application to domiciliary 
care programs of the transfer and discharge requirements from Sec.  
51.80(a)(2)(ii). Section 51.80(a)(2) requires the facility management 
to permit each resident to remain in the facility, and not transfer or 
discharge the resident from the facility unless [circumstances meet one 
or more of a list of conditions]. Among the circumstances permitting 
transfer or discharge, Sec.  51.80(a)(2)(ii) provides, ``The transfer 
or discharge is appropriate because the resident's health has improved 
sufficiently so the resident no longer needs the services provided by 
the nursing home.''. The commenter distinguished domiciliary residents 
from nursing home patients, in that it is clear when nursing home 
patients no longer need nursing home services, but not clear when 
domiciliary residents no longer need domiciliary care, and domiciliary 
residents are not discharged just because of improved health. For that 
reason, it would be inappropriate to apply the nursing home 
requirements for discharge or transfer of a resident to the 
circumstances of most domiciliary residents.
    We disagree with part of this comment. The structured, residential 
environment of domiciliary programs can foster personal and financial 
growth and accountability that allows residents to leave domiciliary 
care programs because of their improved circumstances. We believe 
therefore that it is appropriate to retain this provision with respect 
to discharges due to improved circumstances. The comment revealed a gap 
in the proposed rule, however. Focusing on transfer or discharge 
because of improvement revealed the possibility transfer or discharge 
could be appropriate because the residents may have ceased to meet one 
or more of the eligibility criteria of Sec.  51.51. For example, the 
veteran's annual income may have exceeded the maximum annual rate of 
pension. To fill this gap, we have added paragraph (d)(2)(vii) to the 
criteria for transfer or discharge in Sec.  51.300 to read, ``The 
resident ceases to meet any of the eligibility criteria of Sec.  
51.51.'' Section 51.51 provides eligibility criteria, but it does not 
address whether those criteria apply only to the applicant, or also to 
the resident. It is inconsistent with the function of the eligibility 
requirements, to ascertain whether someone is suitable for the 
domiciliary care program, to apply them at entrance and not during 
residency. A resident who ceases to meet an eligibility criterion would 
certainly meet a criterion for transfer or discharge.
    We agree with the commenter that it is also important to include a 
requirement for when a resident needs to be moved to a higher level of 
care. We have, therefore, excluded domiciliaries from complying with 
Sec.  51.80(a)(2), and instead establish domiciliary transfer and 
discharge requirements in Sec.  51.300(d)(2), including the requirement 
in Sec.  51.300(d)(2)(ii) that residents be discharged if they need a 
higher level of long term or acute care.
    VA received comments objecting to the application in proposed Sec.  
51.300 of the requirement of Sec.  51.80(a)(4) to notify a legal 
representative or family member of a transfer or discharge, and of the 
requirement of Sec.  51.80(a)(5) to provide that notice 30 days in 
advance of the transfer or discharge. The commenters said these 
provisions eliminate flexibility necessary for managing an independent 
living environment and are inconsistent with the independence of the 
residents.
    We have added Sec.  51.300(d) in response to these comments. 
Regarding the requirement to notify a legal representative or family 
member, in Sec.  51.300(d)(4) we have changed the regulation by 
eliminating the State home's requirement to notify and giving the 
resident the right to decide whether the state home notifies a legal 
representative or family member. This is similar to the changes we made 
in Sec.  51.300(a) regarding notifications about medical status and 
room assignment changes. Regarding the 30-day advance notice of 
transfer or discharge, we disagree that the requirement is overly 
burdensome. New paragraph Sec.  51.300(d)(5)(i) provides ample 
exceptions to the 30-day requirement to afford reasonable flexibility. 
The 30-day notice requirement, with the exceptions to make it 
practicable, affords the residents a reasonable safeguard against 
transfer or discharge without warning.

51.300(e) Notice of Bed-Hold Policy and Readmission--Notice Before 
Transfer

    As proposed, Sec.  51.300 would have applied the nursing home 
regulation on notice of bed-hold policy and readmission, Sec.  
51.80(b), to domiciliary care programs. Based on comments asserting 
this to be overly burdensome in the domiciliary care context, we have 
determined there is no need to apply the detailed notice of policy 
requirements to domiciliary care programs that Sec.  51.80(b) applies 
to nursing home care programs. Domiciliary residents still need 
information about the availability of a bed if they return to the home 
from a period of hospital care. To achieve this, we have added 
paragraph (e) to proposed Sec.  51.300, which provides, ``The facility 
management must provide written information to the resident about the 
State home bed-hold policy upon enrollment, annually thereafter, and 
before a State home transfers a resident to a hospital.'' Additionally, 
we have added as the first sentence of the paragraph, ``The State home 
must have a written bed-hold policy, including criteria for return to 
the facility.'' While we agree with the commenters that the domiciliary 
care program bed-hold policy does not need the degree of detail Sec.  
51.80(b) applies to the nursing home care program, we believe there 
must be a policy. This is a logical corollary to the requirement to 
provide a resident the bed-hold policy. While it may seem obvious that 
the State home must have a bed-hold policy to notify a resident of it, 
we believe the paragraph is clearer to explicitly require the State 
home to have a bed-hold policy. We also added a provision regarding a 
resident's right to

[[Page 61258]]

decide whether to have the State home notify others of the change.

51.300(f) Resident Activities, and (g) Social Services

    Several commenters addressed social worker credentialing for 
domiciliary care programs, which we discuss below. In reviewing those 
comments, we concluded the commenters' reasoning about social workers' 
credentials applies as well to credentialing of therapeutic recreation 
specialists in domiciliary care programs. Unlike the nursing homes, the 
domiciliaries do not require a credentialed or licensed professional to 
oversee the residents' activities. We will not apply the credentials 
provisions of Sec.  51.100(g) to the domiciliary care program as 
proposed. To effect that change, we have amended the introductory 
paragraph of Sec.  51.300 to exclude Sec.  51.100(g) and have added 
Sec.  51.300(f), Resident activities, to adapt Sec.  51.100(g) to the 
domiciliary care program. As adapted, Sec.  51.300(f)(1) restates Sec.  
51.100(g)(1), and Sec.  51.300(f)(2) provides, ``The activities must be 
directed by a qualified coordinator.'' Section 51.300 applies no other 
provisions of Sec.  51.100(g) to the domiciliary care programs.
    VA received comments objecting to the proposed application of 
nursing home standards for social services from Sec.  51.100(h), Social 
services, to domiciliary care programs under proposed Sec.  51.300. One 
commenter objected only to the requirement of licensed social workers, 
another objected on the grounds that the proposed regulations mandate 
specific qualifications and staffing requirements that are not imposed 
upon domiciliary programs currently. Another noted that the State homes 
employ licensed and unlicensed social workers, with the latter 
providing only case management for domiciliary residents that do not 
require in-depth treatment, in keeping with a transitional model where 
the social worker's job is to assist the resident with transitioning 
out of the domiciliary.
    We agree the specific credential requirements of Sec.  51.100(h) 
are not necessary for State home domiciliary care programs. We have 
added Sec.  51.300(g) to provide more flexibility in social worker 
staffing for domiciliaries. Paragraph (g) provides that ``[t]he State 
home must provide social work services to meet the social and emotional 
needs of residents to attain or maintain the highest practicable mental 
and psychosocial well-being of each resident;'' that ``[t]he State home 
must have a sufficient number of social workers to meet the residents' 
needs''; and that ``[t]he State home must have a written policy on how 
it determines qualifications of social workers.'' Paragraph (g)(3) 
provides that ``[i]t is highly recommended, but not required, that a 
qualified social worker is an individual with'' the same qualifications 
as those required for nursing home social services providers.
    One commenter noted the proposed regulation applying 51.100 to 
domiciliary care programs ``references the number of required licensed 
social workers for the state veterans' home,'' and that ``clarity needs 
to be given as it relates to requirements for Social Workers assigned 
to the State Home Domiciliary.''
    The regulation on the number of social workers, Sec.  51.300(g)(2), 
provides, ``The State home must have a sufficient number of social 
workers to meet residents' needs.'' We interpret the comment to be 
asking how the required number of social workers specified for nursing 
homes in Sec.  51.100(h), Social services, applies to the domiciliary 
care program. As the introduction to final Sec.  51.300 states, 
51.100(h) is among the nursing home provisions this final rule does not 
apply to domiciliary care programs. Rather, Sec.  51.300(g)(2) affords 
State homes flexibility in determining the number of social workers 
``sufficient'' to meet the object of paragraph (g)(1). Additionally, 
though Sec.  51.300(g)(3) strongly suggests the State home use licensed 
social workers, licensure is not required.

51.300(h) Environment

    VA received comments objecting to the application of Sec.  
51.100(i), Environment, to the domiciliary care program. These objected 
to the proposed closet space requirement and to maintaining 
temperatures at 71-81 degrees Fahrenheit. They commented that 
environmental requirements of Sec.  51.100(i) that have not previously 
applied to domiciliary care facilities would pose extraordinary 
challenges to States operating older facilities that were not designed 
to meet these requirements. One commenter reported it would face 
significant and costly upgrades, especially to a 130 year old facility, 
if VA finalizes the proposed rule. The commenter requested VA 
``grandfather in'' older facilities, permitting them not to make 
upgrades to meet the Sec.  51.300 environment requirements. Another 
objected it could not provide private closet space without ``massive 
renovations.''
    We agree that the temperature, sound, and lighting requirements VA 
proposed are unnecessary for the health and well-being of domiciliary 
residents, and we have eliminated them. We will not, however, remove 
the closet space requirement, or waive it for older facilities. VA has 
demonstrated its view of the importance of this requirement by 
including it among the requirements of its construction grant 
regulations. 38 CFR 59.140, 59.150. A State may seek a part 59 grant to 
assist it to bring older facilities into compliance with these 
essential standards, or to replace facilities that cannot come into 
compliance, but VA will not ``grandfather in,'' i.e., waive the 
requirement for, older facilities that currently lack the required 
closet space. To effect these changes, we have restated the provisions 
of Sec.  51.100(i)(1)-(4) in Sec.  51.300(h), and omitted the 
provisions of Sec.  51.100(i)(5)-(7) from Sec.  51.300(h).

51.300 Other Comments

    VA received comments saying we should not apply State home nursing 
home requirements to State home domiciliaries that would require the 
domiciliary care programs to provide services they do not now provide. 
The commenters specifically mentioned access to an ombudsman. The 
commenters distinguished between the needs of nursing home residents, 
whom they described as an elder, very vulnerable population, and the 
domiciliary residents, who do not have the same vulnerabilities. They 
said the domiciliary care program residents are able to tend to their 
own affairs, and an ombudsman is therefore not necessary.
    VA also received comments asking VA to retain the proposed 
requirement that State home domiciliary residents have access to an 
ombudsman. The commenters asked VA to appoint or require the State to 
appoint an ombudsman or patient advocate. One commenter said that 
decisions would be less ad hoc, more thoughtful, and more considerate 
of residents' welfare if an ombudsman were available.
    We agree with the commenters who asked VA to require domiciliary 
care program residents to have access to an ombudsman. We disagree with 
the commenters who argue the relative soundness of the domiciliary 
residents compared to nursing home residents means the domiciliary 
residents do not need an ombudsman. VA makes no change to the proposed 
application of the ombudsman requirement of Sec.  51.70(j) to 
domiciliary programs. As some commenters pointed out, and VA believes, 
domiciliary residents face vulnerabilities and are entitled to have an 
advocate outside the facility who is able to advocate on their behalf 
or mediate situations between State home

[[Page 61259]]

leadership and residents when necessary. State homes are already 
required to ensure that nursing home residents have access to the State 
long term care ombudsman. Extending that protection to domiciliary 
residents does not require the State to create any new position; it 
need only provide domiciliary residents with access to an existing 
State long term care ombudsman and information how to contact that 
ombudsman. Consistent with the application of the Sec.  51.70(j) 
ombudsman rule to domiciliary residents, we are also adding paragraph 
51.300(d)(6)(v) to require any notice of transfer or discharge to 
include the name, address, and telephone number of the State long term 
care ombudsman.
    One commenter requested that out of sensitivity to the unique needs 
of veterans, VA add to the quality of life regulations under 51.300 a 
requirement that State homes recruit and hire veterans for all 
positions in the State homes, and where veterans are unavailable, 
require special training of non-veterans in ``veteranology'' [sic], 
``or the study of veterans.''
    We decline to add the suggested requirement to the quality of life 
provisions of part 51. Though the commenter's ideas about the value of 
veteran employees or of special education for non-veteran employees at 
State homes have merit, the requirement sought would impose a 
substantial new personnel burden on the state homes, which may conflict 
with employment laws of these States. Rather than impose this 
requirement on the States, we would prefer to give the States 
discretion to hire the best employees for their Veterans. Further, the 
commenter's suggestion is beyond the scope of this final rulemaking. 
Consequently, we make no change based on this comment. Nevertheless, we 
call upon the States to consider the ideas of the commenter.
    The same commenter urged VA to require the States, as a condition 
of receipt of VA per diem payments, to permit residents for whom VA 
pays per diem to apply for career professional employment at State 
homes as a ``civil right.'' The commenter requested regulations 
providing specific employment practices. The commenter further 
requested VA to establish by regulation ``a rating and employment 
system whereby residents of US VA Per Diemed [sic] State Veterans Home 
Domiciliary Programs [sic] who are working professionals living in an 
SVH Domiciliary Program while seeking employment are registered as 
members of a new Federally protected class of veteran--`the SVH 
Domiciliary Veteran-Resident Career Professional.' ''
    The employment regulation the commenter seeks would conflict with 
38 U.S.C. 1742(b), which prohibits VA from having any authority over 
the management or control of any State home. While a resident is free 
to apply to any job, it is beyond the scope of this rulemaking to 
create ``a new Federally protected class of veteran[s].'' Further, as 
noted above, we would prefer to give the States discretion to hire whom 
they consider the best qualified employees for their Veterans.
    Regarding creation of protected classes under Federal civil rights 
law, VA lacks authority to create protected classes of citizens under 
Federal civil rights laws. Creation of the protected class the 
commenter advocates would require legislation. Current statute 
prohibits VA authority over ``the management or control of any State 
home,'' 38 U.S.C. 1742(b), and the establishment of a ``rating and 
employment system,'' as the commenter described it, seems very likely 
to amount to management contrary to that statute. Even if VA had the 
authority to regulate as the commenter seeks, the commenter's 
suggestions are beyond the scope of this final rulemaking. We make no 
changes based on this comment.
    One commenter noted a State home provides transitional domiciliary 
care to Veterans who are medically able to live fully independently, 
but who lack the financial means for subsistence. The commenter said 
that the proposed application of nursing home requirements for State 
home domiciliaries would threaten the State home's ability to maintain 
this practice ``because the Veterans would not meet the new 
requirements of domiciliary care,'' potentially resulting in some 
residents being without a housing alternative.
    Though we are not making any changes in response to this comment, 
we should clarify that the new regulations do not change eligibility 
requirements for residents to require that they be in need of nursing 
home care, nor will the rule change eligibility requirements for any 
veterans receiving domiciliary care. Furthermore, as discussed above 
regarding specific nursing home requirements, we are easing the 
proposed application of multiple nursing home requirements on State 
home domiciliaries. This final rule will not require Veterans to be 
displaced in the manner the commenter described.
    Another commenter asserted that VA should have regulations 
requiring all cash donations to a State home be made known to the 
residents, and that legacy accounts (accounts of deceased residents) be 
made known to the residents and to the public.
    We disagree with this suggestion. Donations to the State home, and 
any disclosure, would be the subject of State law. All States have laws 
governing access to public records like this. If the commenter believes 
that State laws need to be changed, we recommend that the commenter 
seek action at the State level. Requiring States to change their laws 
governing such access is beyond the scope of this rulemaking. Regarding 
the commenters concern about legacy accounts, current regulations 
governing residents' funds are sufficient to regulate the State home's 
handling of those funds. Current regulation, 38 CFR 51.70(c) Protection 
of resident funds, applies to domiciliary care programs through final 
Sec.  51.300. It provides for the handling and accounting for a 
resident's funds on deposit with a State home, including their final 
accounting and conveyance upon a resident's death. The regulation also 
provides that each resident is to have personal control of the 
resident's funds, that the State home cannot require the resident to 
deposit the funds with the State home, that the State home account for 
the funds to the resident or to a resident's legal representative, and 
that the state make a final accounting and conveyance of funds to the 
individual or probate jurisdiction administering the resident's estate 
or other appropriate entity. These rules together are consistent with 
treating the residents' finances as a private matter, even after death. 
We make no change based on this comment.

51.310 Resident Admission, Assessment, Care Plan, and Discharge

    We have made multiple changes to Sec.  51.310. Some are in direct 
response to comments, and some simply improve organization, clarity, 
and readability. We have revised the heading to read, ``Resident 
admission, assessment, care plan, and discharge'', to be more 
descriptive of the scope of the section. We have rearranged provisions, 
grouping related provisions together and putting them in the sequence 
the State homes will generally apply them. This reduces the number of 
paragraphs in the section from the proposed introduction plus five 
paragraphs, (a) through (e), to introduction plus four paragraphs, (a) 
through (d). We have inserted the words ``medical and comprehensive'' 
before ``assessments'' in the introduction, and inserted 
``comprehensive'' before ``assessment'' throughout the section, to 
indicate they are different. The medical assessment informs the State 
home of the new resident's medical status and immediate needs on 
admission. The

[[Page 61260]]

comprehensive assessment incorporates the result of the medical 
assessment and builds on it by bringing together multiple health 
professionals' assessments of the resident's physical, mental, and 
social needs. The comprehensive assessment, in turn, informs the 
comprehensive care plan. We discuss these assessments below. The 
introductory paragraph of Sec.  51.310 introduces each of these 
assessments. We have also added a last sentence to the introduction, 
``The State home must review comprehensive assessments annually, and 
promptly after every significant change in the resident's physical, 
mental, or social condition.'' This sentence adds no new requirement to 
the proposed admission, assessment, and comprehensive care plan 
process. Rather it clarifies the ongoing relationship between the 
comprehensive assessment and the comprehensive care plan.
    Three commenters asserted that the unknown cost of having 
physician's orders for each resident's immediate care and an assessment 
including medical history and physical examination within 72 hours of 
admission, as proposed Sec.  51.310(a) required, would be excessive. 
The commenters compared the proposed requirements with the 1986 Guide, 
which required that the domiciliary provide and maintain a treatment 
plan for each domiciliary patient.
    We partly agree and partly disagree. We agree that 72 hours is not 
always enough time to perform the assessment with medical history and 
examination. We have changed proposed Sec.  51.310(a) to allow 7 
calendar days for the medical assessment, which is consistent with VA 
practice for its domiciliary care program and will provide the State 
homes with ample time to perform an assessment of the resident. We have 
clarified that the assessment upon admission is a medical assessment, 
adding ``and medical assessment'' to the paragraph (a) heading, to 
read, ``(a) Admission orders and medical assessment.'' This will 
distinguish this assessment from the comprehensive assessment 
identified in the introductory paragraph and in paragraph (b). We have 
also added a last sentence to paragraph (a), ``The medical assessment 
will be part of the comprehensive assessment.'' This makes clear that a 
medical assessment is part of the comprehensive assessment, consistent 
with the inclusion of a physician among the practitioners listed among 
those to do the comprehensive assessment described in paragraph (b) of 
this section.
    Further, for clarity and certainty, we redesignated paragraph (b) 
to allow the State home 14 calendar days after admission to complete 
the comprehensive assessment and redesignated paragraph (c) to allow 21 
calendar days after admission to develop the comprehensive care plan. 
As proposed, Sec.  51.310(d)(2)(i) required a treatment plan be 
``Developed within 7 calendar days after completion of the 
comprehensive assessment,'' but there was no deadline for the 
comprehensive assessment. Without a deadline for the comprehensive 
assessment, the proposed rule was uninformative and afforded poor 
guidance and no certainty about when the treatment plan might be done. 
Compared to the proposed process from admission to care planning, these 
changes afford more overall flexibility while also providing more 
useful guidance to the State homes and more certainty for the State 
homes and for VA. Also, we have added ``annually, and as required by a 
change in the resident's condition'' at the end of paragraph (b)(1). 
Though this restates a phrase of the introduction to Sec.  51.310, we 
feel it is necessary to avoid any impression that the paragraph (b)(1) 
requirement to do a comprehensive assessment on admission contradicts 
the requirement of annual and as needed comprehensive assessments in 
the introduction. Paragraph (b)(2) describes the purpose of the 
comprehensive assessment to distinguish it from the medical assessment.
    We disagree with the comment that physician orders for immediate 
treatment should not be required upon admission. Admitting a resident 
into a residential program with unknown current health needs is an 
unreasonable risk, both for the patient and for other residents of the 
domiciliary, although we recognize that this recommendation was made 
under the assumption that VA would require doctor orders and the 
complete assessment no later than 72 hours of admission. We have 
revised the section to distinguish between the medical assessment 
required shortly before or soon after admission and the subsequent 
comprehensive assessment, of which the medical assessment is part. As 
changed, the paragraph allows 7 calendar days after admission to 
complete the medical assessment. This clarification and other changes 
to this section provides the State homes with more flexibility in 
completing the medical assessment and makes the physician orders 
requirement perfectly reasonable in light of its importance. 
Consequently, we decline to eliminate the physician orders requirement. 
We have eliminated the proposed provision that ``physician orders may 
be submitted when available'' from Sec.  51.310(a), because it is 
essential to know of immediate medical needs at the time of admission, 
and it is inconsistent with the changes in this final rule.
    VA received comments saying the requirement that the medical 
assessment be performed by a physician rather than a nurse is overly 
burdensome and unnecessary because domiciliary residents are generally 
in better health and have fewer medical needs than nursing home 
residents. We agree that a physician need not perform the resident's 
medical assessment upon entering a domiciliary care program. We have 
therefore changed proposed paragraph (a), Admission orders and medical 
assessment, to provide that ``a physician, or other health care 
provider qualified under State law'' must perform the assessment.
    We have removed proposed paragraph (b), which provided, ``The State 
home must use the results of the assessment to develop, review, and 
revise the resident's treatment plan.'' Initially proposed paragraph 
(c), ``coordination of assessments,'' is redesignated paragraph (b) and 
renamed to place this provision in the context of comprehensive 
assessments. As restructured, the section now flows functionally from 
(a), admission and medical assessment, through (b), comprehensive 
assessment, to (c) comprehensive care plan, and finally (d) discharge 
report.
    VA received comments saying that the proposed global nursing home 
assessment tool is inappropriate for domiciliary care programs. One 
commenter noted we based proposed Sec.  51.310 on Sec.  51.110, which 
requires nursing home care programs to use the Centers for Medicare and 
Medicaid Services Resident Assessment Instrument Minimum Data Set 
(MDS), Version 3.0. The commenter asserted the MDS 3.0 does not allow 
for assessing domiciliary residents.
    We did not propose using a global nursing home assessment tool. It 
appears the commenters misread the notice of proposed rulemaking, which 
specifically explained there is no national tool for assessment of 
domiciliary residents as there is for nursing homes. Our intent was to 
provide State homes with reasonable flexibility in conducting the 
assessment, which is why proposed Sec.  51.310 stated the assessment 
objectives and process without specifying an assessment tool.
    VA received a comment that in a State with a State-established 
required assessment tool for domiciliary care,

[[Page 61261]]

VA's assessment requirements would be duplicative, resulting in 
additional, unreimbursed costs. The commenter recommended VA allow each 
State to use its State required assessment tool and for VA to provide a 
tool for the use of States without a state-required tool.
    VA disagrees. Section 51.310(a) does not require duplicative 
assessments, though it could require the State to augment its 
assessment procedure. The introduction to this section requires the 
State home to establish in a written policy how it will complete, 
implement, review, and revise comprehensive assessments. This allows 
the State home sufficient flexibility to use its existing assessment 
tool if it produces an assessment with sufficient information about the 
resident's emotional, behavioral, social, and physical needs to inform 
a comprehensive care plan targeted as meeting those needs. We will not 
change the regulation to explicitly provide that States may use any 
assessment tool it may have because there would be no assurance that 
the assessments would be comprehensive enough. Nor is it practicable 
for VA to review States' assessment tools for sufficiency, and then 
monitor them for continued sufficiency subsequent to any revision. We 
do not require the State homes to use an assessment tool specifically 
designed for nursing homes. We require the assessment to be adequate to 
inform the comprehensive care plan. We believe this section is flexible 
enough to enable the State to avoid the cost of duplicative 
assessments, while providing for the health and wellness of State home 
domiciliary residents. We make no change based on this comment.
    In response to comments on Sec.  51.51 about residents' work in the 
State home as part of a comprehensive care plan, discussed above, we 
have added paragraph (c)(1)(ii) to this section, providing that a 
comprehensive plan must describe: ``The specific work the resident 
agrees to do to share in the maintenance and operation of the State 
home upon consultation with the interdisciplinary team, and whether 
that work is paid or unpaid''. This identifies with whom the resident 
agrees to perform certain work, and also that the agreement is about 
which work the resident will do to share in the maintenance and 
operation of the State home, not whether the veteran agrees to do some 
work.
    We have changed the proposed description of the purpose of the 
comprehensive care plan. Proposed paragraph (d)(1) provided the 
comprehensive care plan is ``to address the resident's physical, 
mental, and psychosocial needs''. In light of comments received and 
described above about the role of mental health and other specialty 
care services in domiciliary care, we feel a change in terminology 
would allow State homes to better understand and implement this 
provision. As changed, redesignated paragraph (c)(1) says the 
comprehensive care plan is ``to address a resident's emotional, 
behavioral, social, and physical needs.'' To allow care providers the 
flexibility to ensure the comprehensive care plan best reflects each 
resident's needs, we have also added to the last sentence of paragraph 
(c)(1) a provision that the comprehensive care plan must describe the 
items listed, ``as appropriate to the resident's circumstances.''
    We have deleted the reference to Sec.  51.350 in proposed paragraph 
(d)(1)(i), ``as required under Sec.  51.350;''. The reference made 
sense as proposed, because Sec.  51.350 would have applied all of 
multiple nursing home regulations to domiciliary care programs. As 
revised, Sec.  51.350 does not apply most of those nursing home 
regulations to domiciliary care programs, and removing the reference is 
consistent with the flexibility we intend final rule Sec.  
51.310(c)(1)(i) to allow.
    We have also changed the reference to ``the resident's exercise of 
rights under Sec.  51.300, including the right to refuse treatment'' in 
proposed paragraph (d)(1)(ii). As revised and redesignated paragraph 
(c)(1)(iii), the paragraph reads, ``Any services that would otherwise 
be required under Sec.  51.350 but are not provided due to the 
resident's exercise of rights under Sec.  51.70, including the right in 
Sec.  51.70(b)(4) to refuse treatment. This change provides the reader 
a more direct reference to the substantive provisions concerned. Though 
the proposed reference to Sec.  51.300 is correct, it is indirect. 
Reference to Sec.  51.300 requires the reader to ascertain that Sec.  
51.300 applies Sec.  51.70, so the reader must then look to Sec.  51.70 
for the substantive provisions. This change of cross reference 
simplifies finding the provisions to which the paragraph refers.
    In Sec.  51.310, we changed proposed paragraph (d)(2)(i), which 
would have required the State home to complete a comprehensive care 
plan within 7 calendar days of completion of the assessment. As 
revised, redesignated paragraph (c)(2)(i) requires the State home to 
develop a comprehensive care plan no later than 21 calendar days after 
admission. This lets the State home manage time and resources better, 
potentially allowing more than 7 calendar days to complete the 
comprehensive care plan if the comprehensive assessment is completed in 
less than the time allowed. It also affords certainty about when the 
State home will have a comprehensive care plan for each resident.
    Proposed paragraph (d)(2)(iii), redesignated paragraph (c)(2)(iii), 
provided for periodic review and revision of the comprehensive 
treatment plan. We determined that final paragraph (c)(2)(iii) would 
provide clearer guidance if it tied in with the introduction of 
paragraph (c)(1). Towards that end, we have changed the periodic review 
and revision to be ``consistent with the most recent comprehensive 
assessment''. With this change, paragraph (c)(2)(iii) reads, ``Reviewed 
periodically and revised consistent with the most recent comprehensive 
assessment by a team of qualified persons no less often than semi-
annually''.
    We also determined that redesignated paragraph (c)(2) did not 
complete the logical progression of the paragraph. The point of 
periodic review is to change the treatment plan if the review reveals 
it needs to change. We believe it is implicit in the Sec.  51.310 
introductory requirement to reassess a resident promptly after every 
significant change in condition that the comprehensive care plan must 
also change promptly in response to a significant change in the 
resident's condition. Consequently, we have added ``; and'' at the end 
of final paragraph (c)(2)(iii), followed by new paragraph (c)(2)(iv), 
which reads, ``Revised promptly after a comprehensive assessment 
reveals a significant change in the resident's condition.''
    Proposed paragraph (e)(3) did not state as well as we intended the 
resident's right to control whether to include a legal representative 
or interested family member in discharge planning. We have restated 
that point in redesignated paragraph (d)(2) as an affirmative right.

51.330 Nursing Care

    One commenter requested clarification of the statement in the 
supplemental information of the proposed rule that the nursing care 
required in domiciliary care programs ``would be similar to what is 
required in nursing homes, except that we would not require the same 
level of skilled nursing supervision.'' VA received comments that, as 
proposed, Sec.  51.330 would require State homes to staff domiciliary 
care programs with the same amount of nursing staff VA

[[Page 61262]]

requires State homes to provide for nursing home care programs. They 
commented that currently, State home domiciliary care programs require 
a licensed nurse as needed to meet the nursing care needs of the 
patient, citing section 5E of the 1986 Guide, whereas the proposed rule 
would require a licensed nurse for each shift, every day, around the 
clock. The commenters said that requirement could increase their costs 
for nursing supervision.
    We agree the discussion was not clear about what ``similar to'' and 
``level of supervision'' meant. We also agree that the proposed 
requirement could result in increased costs and that domiciliary care 
program residents may not require a licensed nurse on each shift, if 
the nursing care needs of the residents are met. We have, therefore, 
eliminated the proposed requirement that the director of the nursing 
service designate a licensed nurse as the supervising nurse for each 
tour of duty. Otherwise, the staffing requirements in this final rule 
are similar to the existing nursing care requirements for domiciliary 
care programs in section 5A of the 1986 Guide, which requires an 
organized nursing service of personnel qualified to meet the nursing 
care needs of the domiciliary patient. The final rule, however, 
clarifies that the residents' individual comprehensive assessments and 
comprehensive care plans determine their need for nursing services, and 
that need must be met 24 hours a day, 7 days a week. We continue to 
believe this is a reasonable and necessary requirement for availability 
of nursing care.
    One commenter said that some states have regulations prescribing 
staffing levels for State homes. The commenter described the staffing 
level required by its Residential Care Home Licensing Regulation. The 
commenter recommended VA permit states with regulatory staffing levels 
to follow those regulations and that VA provide a regulation for states 
without a State regulated staffing level.
    We decline to make the commenter's recommended change. Section 
51.330, as revised, articulates VA's view of the minimum safe staffing 
for nursing care in State home domiciliary care programs. VA would not 
be comfortable relying on staffing levels set by the State because they 
might not meet that minimum. So, to allow the exemption from Sec.  
51.330 the commenter seeks, VA would have to review each State's 
regulation to assure it requires staffing equivalent to the minimum 
level VA considers acceptable. Such a plan would require a way for VA 
to know if any State's regulation changed, to again review the 
regulation, and to maintain a procedure for disallowing states from the 
exemption if a change permitted an unacceptable level of nurse 
staffing. This is not a practicable scheme for VA. We believe that if a 
state's regulations require nurse staffing equivalent to the level VA 
considers minimally acceptable, the cost cannot be significantly 
different from the cost of compliance with Sec.  51.330, and the state 
would not realize any cost savings from the exemption. Consequently, we 
make no change based on this comment.
    One commenter asked whether facilities with ``co-located'' 
domiciliary care and nursing home care programs on the same property or 
in the same building must have a director of nursing for each or if 
they may share a director of nursing. The commenter also asked whether 
the two programs can share the supervising nurse for each tour of duty, 
and whether a ``tour of duty'' is the same as a shift.
    We intend the State homes to have the flexibility to staff their 
programs to ensure that all residents get the nursing care each 
resident's comprehensive assessment indicates each resident needs. The 
regulation does not preclude sharing a nursing director. A shared 
nursing director would comply with the regulation only, however, if the 
State home can ensure it meets the total nursing care needs of all 
residents in the facility. This final rule eliminates proposed Sec.  
51.330(b), which required a licensed supervising nurse for each tour of 
duty, so the questions about a shared nursing supervisor and whether a 
tour of duty is the same as a ``shift'' are moot.

51.340 Physician and Other Licensed Medical Practitioner Services

    VA received comments about the requirement in proposed Sec.  51.340 
that State homes provide necessary primary care to domiciliary 
residents. Commenters objected to the proposed requirement in this 
rule, and raised concerns about the definition of ``primary care'' in 
the VA General Counsel Precedent opinion ruling that State home 
domiciliary care programs must provide primary care to be entitled to 
per diem payments. VAOPGCPREC 1-2014 (Mar. 21, 2014). Some commenters 
objected to the General Counsel's inclusion of surgical services in 
primary care, and some objected to its inclusion of mental health 
services in primary care. The commenters said surgical services and 
mental health services are generally considered specialty care, and VA 
should define primary care in the same manner as Medicare.
    We recognize the confusion about what is included in primary care, 
which has resulted from the General Counsel opinion and the proposed 
rule, and therefore clarify that we do not consider primary care as 
including comprehensive mental health or surgical services. We thus do 
not consider Sec.  51.340 as requiring a State home to provide 
domiciliary residents either surgical or comprehensive mental health 
services--only to assist residents with obtaining these services. See 
also section 51.2 of this rulemaking, which defines domiciliary care as 
including ``necessary medical services'' that are described in subpart 
E. Nothing in subpart E requires State domiciliaries to provide either 
surgical or comprehensive mental health services. We note, however that 
under this subpart (Sec. Sec.  51.300(f)-(g), 51.320(d), 51.340), the 
State home is required to provide basic mental health screening. We 
acknowledge that proposed Sec.  51.340 was unclear about what mental 
health services the State home domiciliaries would be required to 
provide without many of the clarifications in this final rule. The 
final rule requires the State home to provide ``its residents the 
primary care necessary to enable them to attain or maintain the highest 
practicable . . . mental, and psychosocial well-being.'' Though this 
could be misread to mean the domiciliary must provide all care 
necessary to attain or maintain mental health, we believe it is clear 
that it requires the domiciliary to provide only the necessary primary 
care. The State home discharges its obligation to enable its residents 
to attain or maintain mental and psychosocial well-being when it 
provides primary care. It further requires the State home to assist its 
residents to obtain other care when a resident needs care other than 
care the State home must provide. So, if the veteran needs mental 
health care other than that required by subpart E, the State home must 
assist the resident to obtain that care.
    One commenter objected to the primary care requirement because it 
would substantially increase state expenses and undermine a resident's 
ability to obtain care from a physician of his or her choice. The 
commenter said the primary care requirement would require residents to 
abandon their existing physicians and mental health specialists, 
significantly reducing State home admissions and negatively affecting 
current residents.
    One commenter stated medical care should be the veteran's choice 
when the veteran is capable of making the choice. The commenter did not 
address the

[[Page 61263]]

comment to a specific provision, so it is not clear whether the 
commenter was addressing a right to choose among health care 
practitioners or a right to choose to refuse care.
    This regulation will not prevent State home domiciliary residents 
from seeing the private health care providers they choose to see. The 
Sec.  51.340 requirements do not mean a resident may not see a private 
physician of his or her choice or must abandon an existing relationship 
with a private healthcare provider. Further, domiciliary residents 
retain the right to receive care from their private physicians in the 
State home domiciliary, provided the physician is credentialed and 
privileged in the State home. If the commenter means the veteran should 
have the choice whether to receive medical care, the veteran may refuse 
treatment under Sec.  51.300, which applies to domiciliary residents 
the right to refuse treatment as prescribed in Sec.  51.70(b)(4). We 
make no change based on these comments.
    Furthermore, it is unclear why the commenter believes costs would 
increase; it may be because of the assumption that VA intended to 
include mental health and surgical services in primary care. The 
guidelines under which the State home domiciliary care programs have 
long operated required each resident to have a primary care physician 
responsible for the resident's medical care, and required that primary 
care medical services be provided for residents as needed. Section 
51.340 imposes no additional primary care burdens or costs. Further, 
these regulations would not preclude States from charging the veteran's 
insurance for providing primary care. We make no changes based on this 
comment.
    VA received a comment requesting a ``thorough and explicit 
definition of what primary care entails.'' The commenter was 
``concerned that the proposed rules would transfer all medical costs 
associated with resident care to the state and nullify existing sharing 
agreements'' with the local VA facility. Another commenter also raised 
essentially the same points about the extent of health care the 
proposed regulations require and about transferring costs and sharing 
agreements, asserting the burden of shifting primary care costs could 
make operating domiciliary care unsustainable.
    The regulation, as proposed, does not specifically define primary 
care, and we believe the common dictionary definition VA General 
Counsel quoted in the precedent opinion cited above is sufficient and 
widely used. VA declines to define primary care with a list of specific 
medical services. We disagree that lack of definition of primary care 
could affect the commenter's primary care sharing agreement with a 
local VA medical facility. Under the final regulation, this arrangement 
may continue. The State currently pays for the primary care VA provides 
through a sharing agreement, so there is no cost to transfer to the 
State. We make no change based on this comment.
    VA received a comment saying that providing additional medical 
services would be especially burdensome to some State homes that were 
built in remote locations to care for veterans in underserved 
communities. Those homes, the commenter stated, currently experience 
hiring challenges and staffing shortages, and the new requirements 
would pose challenges and costs associated with hiring additional staff 
or contracting with outside providers.
    We understand that staffing or otherwise obtaining the required 
services can be more difficult in some areas than others, whether 
because of remote location and a small labor pool, or because of a 
central, densely served market with stiff labor competition among 
employers. The primary care VA requires State homes provide is 
essential to the health, safety, and well-being of the domiciliary care 
residents. We will not eliminate or reduce the requirements in response 
to the vagaries of the local labor market. We make no change based on 
this comment.
    VA received comments that the State home domiciliary care standards 
in the 1986 Guide, required that a resident be seen annually and as 
needed by the primary care physician or other licensed medical 
practitioner. The proposed rule, however, specified that the resident 
must be seen by the primary care physician or licensed medical 
practitioner at least every 30 days for the first 90 days after 
admission, and at least once annually thereafter, or more frequently 
based on the condition of the resident. The commenter said this 
requirement would result in a cost burden to the domiciliary, 
potentially a 100% increase in physician visit costs.
    We agree with the commenter that more frequent primary care 
physician's visits than the State homes have been accustomed to 
providing will increase the State homes' costs. We also agree a 
domiciliary resident need not be seen every 30 days for the first 90 
days of residency. The typical domiciliary resident's health does not 
require the frequency of medical monitoring we proposed. We have 
changed the requirement in Sec.  51.340(d) to require an annual medical 
assessment, restating the provision in the active voice to read, ``The 
primary care physician or other licensed medical practitioner must 
conduct an in-person medical assessment of the resident at least once a 
calendar year, or more frequently based on the resident's condition.'' 
Though redundant of the annual medical assessment Sec.  51.310 
requires, it is useful also to restate here to consolidate the 
requirements regarding physicians and other medical practitioner 
services. This change also eliminates the colloquial expression ``be 
seen'' in favor of the more precise term ``assessment.''
    One commenter interpreted proposed paragraph (e) to mean the 
domiciliary must provide or arrange for physician or other licensed 
medical practitioner services 24 hours a day, 7 days a week, in case of 
an emergency. The commenter also asked for clarification whether the 
provider must be on site or may be on call.
    We did not intend the commenter's interpretation of the provision, 
which states, ``The State home must assist residents in obtaining 
emergency care.'' Though a State home certainly may staff its facility 
at all times, the provision does not require it. It requires only that 
the facility management be able assist the resident in obtaining 
emergency care. For example, a telephone call to local 911, if 
available, could comply with Sec.  51.340(e). We make no change based 
on this comment.

51.350 Provision of Certain Specialized Services and Environmental 
Requirements

    Proposed Sec.  51.350 would have applied all of the standards 
applicable to State home nursing homes at Sec. Sec.  51.140, 51.170, 
51.180, 51.190, and 51.200 to State home domiciliary care programs. We 
are making multiple changes to this section. These correct errors in 
the proposed rule, respond to comments, and will serve the needs of 
State home domiciliary care programs and their residents better than 
would the proposed application of the whole of the sections we proposed 
to apply.
    We are removing the phrase ``nursing home and nursing facility'' 
from the last sentence of the introduction to proposed Sec.  51.350. 
Its use was an error. The cited regulations use the term ``the 
facility,'' but not, ``nursing home'' or ``nursing facility.'' As 
revised, the sentence reads, ``For purposes of this section, the 
references to `facility' in the cited sections also refer to a 
domiciliary.''
    VA received comments opposing the imposition of the whole of these 
regulations on domiciliary care

[[Page 61264]]

programs and recommending the domiciliary program standards be more 
consistent and commensurate with the stated definition and purpose of 
domiciliary care. Multiple commenters recommended increasing per diem 
payments for domiciliary care, as one put it, ``to be compensated for 
the increased requirements for our domiciliary care facility.'' This 
commenter specifically reported a $103,000.00 loss in its domiciliary 
care program in the past year, submitting a financial analysis.
    We agree that certain standards that proposed Sec.  51.350 would 
have applied to domiciliary care programs are impracticable or 
inappropriate. Consequently, we have revised proposed Sec.  51.350, to 
exclude Sec.  51.140(f)(2)-(4), Sec.  51.180(c), and Sec.  51.200(a), 
(b), (d)(1)(ii)-(x), (f), and (h)(3) from application to domiciliary 
care programs. In addition, we will exclude other provisions as 
discussed below. Though the mechanism for setting the rate of per diem 
payment is prescribed by statute, we anticipate these changes will also 
reduce the costs of compliance.
    Section 51.140(f), Frequency of meals, requires nursing home 
residents to receive and nursing homes to provide three meals per day 
at regular times comparable to normal meal times in the community. 
Paragraph (f)(4) of that section allows an interval of 16 hours between 
dinner and breakfast if a nourishing snack ``is provided'' at bedtime. 
Consistent with comments about applying Sec.  51.140 to domiciliaries 
that asserted the generally greater independence of domiciliary 
residents than nursing home residents, we have added Sec.  51.350(a) to 
apply to domiciliaries instead of paragraph (f)(2)-(4). Paragraph 
(a)(1) requires no more than a 14-hour interval between the evening 
meal and breakfast. Paragraph (a)(2) requires the facility staff to 
offer snacks at bedtime daily, as does Sec.  51.140(f)(3). Paragraph 
(a)(3) allows 16 hours between the evening meal and breakfast when the 
bedtime snack is nourishing. The difference between the domiciliary 
regulation and the nursing home regulation is the difference between 
whether the nourishing snack ``is offered'' or ``is provided'' to 
residents. This difference takes into account the greater independence 
of domiciliary residents, who can maintain adequate nutrition without 
the monitoring the nursing home requirement entails. It is, however, 
the nutritional character of the offered bedtime snack, not the 
resident's independence in whether to eat it, that affords the State 
home the additional two hours between the evening meal and breakfast.
    Some commenters objected to the proposed monthly drug regimen 
review required under Sec.  51.180(c)(1), saying that compared to the 
semiannual drug regimen review required for domiciliary residents in 
the 1986 Guide, the proposed rule would result in a significant cost 
increase.
    VA agrees with the commenters. The intent of the proposal, to 
preserve the health and safety of State home domiciliary residents, can 
be met with a semiannual drug review. We have added Sec.  51.350(b), 
which requires a drug regimen review at least once every six months and 
included the requirement in Sec.  51.180(c)(2) requiring a report and 
action if any irregularities are found.
    VA received comments objecting to the burdens of bringing State 
homes providing domiciliary care into compliance with the requirements 
of Sec.  51.200, Physical environment. Multiple commenters said that 
transition-based programs are not currently required or able to meet 
many of the physical or plant features included in the nursing home 
standards. The commenters paraphrased or quoted provisions of Sec.  
51.200 to illustrate nursing home requirements they asserted 
domiciliary care facilities could not meet. Among these paraphrases or 
quotations were ``provide adequate room space in most rooms,'' 
apparently based on Sec.  51.200(d)(1)(i)-(iv); ``provide sufficient 
privacy (ceiling suspended curtains extending around beds for total 
visual privacy) in rooms with more than one resident,'' apparently 
based on Sec.  51.200(d)(1)(vii)-(viii); ``provide prescribed storage 
space for residents,'' apparently based on Sec.  51.200(d)(2)(iv); 
``have a resident calling system directly to nursing,'' apparently 
based on Sec.  51.200(f); and ``have corridors equipped with 
handrails,'' paraphrasing Sec.  51.200(h)(3). We construe these 
comments as references to these provisions because we do not interpret 
the commenters to literally oppose providing ``adequate privacy,'' or 
``sufficient privacy.''
    In response to the comments, we have excluded Sec.  51.200(a), 
Sec.  51.200(b), Sec.  51.200(d)(1)(ii-x), Sec.  51.200(f), and Sec.  
51.200(h)(3) from application to domiciliaries, as noted above. In 
place of the privacy requirements in Sec.  51.200(d), we have provided 
for ``visual privacy'' in Sec.  51.350(d), which reads, ``The facility 
must provide the means for visual privacy for each resident.'' This is 
based on Sec.  51.200(d)(1)(vii), which requires nursing home bedrooms 
``[b]e designed or equipped to ensure full visual privacy for each 
resident.'' Section 51.200(d)(1)(viii) further specifies that the 
nursing home bedrooms (other than private rooms) must have ``ceiling-
suspended curtains,'' further specifying their placement and specifying 
other furnishings of the room to ensure ``visual privacy.'' We intend 
this Sec.  51.350(d) to afford the State homes reasonable flexibility 
in finding a way to let the domiciliary resident sleep or change 
clothes or do other ordinarily private things without being watched or 
in open view of other residents.
    While many of these requirements are essential to the health, 
safety, and well-being of the domiciliary residents, we agree with the 
commenters that some would pose an excessive burden to State home 
domiciliaries and are more appropriate for nursing home care than 
domiciliaries, because domiciliary residents remain more independent. 
For those reasons, in this final rule, we will not apply to 
domiciliaries the following environmental requirements: Sec.  
51.200(d)(1)(ii-x) regarding resident bedrooms; Sec.  51.200(f) 
regarding resident call systems; and Sec.  51.200(h)(3) regarding 
handrails. All of these requirements are more aligned with skilled 
nursing home care then they are with domiciliaries, and they are not 
requirements in VA domiciliaries.
    VA received a comment that the cost of renovations and upgrades to 
meet the environmental requirements would total hundreds of millions of 
dollars nationwide, and the facilities would be forced to compete for 
funding with the limited resources in VA's State home construction 
grant program. We agree as discussed above that some of the proposed 
requirements were too burdensome, and we revised the regulation 
accordingly. We also agree that applications for grants from VA to meet 
the cost of complying with a Sec.  51.350 requirement might compete 
with applications to fund other projects in the construction grant 
program, but life and safety projects are given priority over all other 
types of construction when VA determines whether to award construction 
or acquisition grants. (See 38 CFR part 59 for regulations governing 
grants to States for construction or acquisition of State homes.) We 
have revised the final rule to ease the burden of compliance with the 
specialized services and physical requirements for State home 
domiciliaries; the rest of the requirements under Sec.  51.350 are 
essential to the health, safety, or well-being of domiciliary residents 
and cannot be eased or removed.
    One commenter asked VA to ``grandfather in'' (i.e., waive the

[[Page 61265]]

requirements for) older facilities that have not needed to comply with 
environmental requirements of Sec.  51.100 and 51.200 that have 
traditionally applied only to nursing homes, citing the high costs of 
making the needed upgrades. Because these provisions are essential to 
the health, safety, and well-being of domiciliary residents, we will 
not waive the requirements for older facilities. We make no changes 
based on this comment.
    VA received a comment that imposing the nursing home fire safety 
standards of Sec.  51.200 would ``drive many homes out of business,'' 
saying State homes would have to reconsider providing domiciliary care 
altogether and perhaps provide only nursing home care.
    We agree that some of the fire safety rules that apply to nursing 
home care programs are inappropriate for domiciliary care programs, 
because of the differences in the services they provide. Specifically, 
we will not require State home domiciliary care programs to meet NFPA 
99, Health Care Facilities Code, as Sec.  51.200(a) requires of State 
nursing home programs. We are, therefore, changing proposed Sec.  
51.350 by adding a new paragraph (c) that only requires State home 
domiciliaries to meet the ``applicable'' requirements of NFPA 101. We 
have changed the introduction to Sec.  51.350 to exclude Sec.  
51.200(a) from application to domiciliaries.
    We have also determined it would be inappropriate to apply the 
nursing home emergency power requirements of NFPA 99 to domiciliary 
facilities. NFPA 99 prescribes emergency generator specifications for 
nursing homes. It is not necessary or appropriate to require State home 
domiciliaries to have emergency power generating equipment that meets 
the NFPA 99 specifications of the sort appropriate to nursing homes and 
specified in Sec.  51.200(b). The applicable provisions of NFPA 101 
regarding emergency power will apply instead under Sec.  51.350(c). We 
have thus changed the introduction to Sec.  51.350 to exclude Sec.  
51.200(b) from application to domiciliaries.

General Concerns Regarding Domiciliary Regulations

    One commenter, observing the proposed rule appeared to require a 
level of care for domiciliary residents that mirrors nursing home care, 
suggested it would have been beneficial to review assisted living 
regulations across the country because most State home domiciliaries 
are also licensed by their state's assisted living regulatory licensure 
and compliance.
    We disagree about the benefit of reviewing State assisted living 
regulations. State assisted living regulations are not pertinent to 
VA's program of payment of per diem for veterans in State home 
domiciliary care programs. VA does not pay for assisted living. 
Veterans residing in a State home must meet the eligibility criteria 
either for a nursing home care program or for a domiciliary care 
program. The State home must meet VA's standards for receipt of per 
diem for those veterans. Moreover, VA must administer a nation-wide 
program. Consequently, we choose to have regulations of uniform, 
nation-wide application. These may be like some State assisted living 
regulations and unlike others, but State assisted living regulations 
are not an appropriate model for VA per diem regulations. We make no 
change based on this comment.
    VA received a comment reporting grievances about conditions at 
State home domiciliary programs and asking VA to apply all of the 
regulations governing per diem payments to State home nursing home care 
programs to State home domiciliary care programs. The commenter urged 
VA to afford domiciliary care program residents the same care provided 
nursing home residents. The commenter requested that VA effect that 
change by issuing a VA General Counsel opinion. The commenter argued 
for immediate implementation of this opinion as a ``regulatory 
instrument'' until VA publishes domiciliary per diem regulations. 
Specifically, the commenter recommended as the ``holding'' of the 
opinion, ``[I]n order for a State to receive per diem payments from the 
VA for a resident in its State home domiciliary, the home must provide 
domiciliary care to the resident (or residents) in accordance with 38 
CFR 51, the current VA regulation outlining long-term care of veterans 
in state nursing homes.'' The commenter requested specific VA officers 
implement the suggested General Counsel opinion.
    Another commenter reported that a specific State home conducts 
residents' room inspections, threatens sanctions for [resident] non-
compliance with the State home rules, schedules re-inspections, and 
then fails to follow through. The commenter stated this lack of follow 
through ``leaves us dangling,'' and demonstrates the ``ad hoc'' 
management of the State home.
    Another commenter expressed grievances about a State's 
administration of a State home, including concerns that the domiciliary 
housed veterans unable or unwilling to meet the personal hygiene 
requirements for residency, allegations of failure to maintain the 
facility, allegations of failure to spend VA per diem payments on or on 
behalf of the residents, or of diverting the funds into the State's 
general fund. The commenter requested VA to regulate specific 
oversight, staffing, financial accounting, and expenditure 
requirements. Specifically, the commenter requested a regulation 
requiring ``all monies that the VA gives to the States for these Homes 
be placed in a separate account that can only be used for the Home.''
    We decline to add a regulation to implement the suggestion 
regarding dedicated accounts. VA monitors each State home's census and 
its expenditures on nursing home, domiciliary, and adult day health 
care services. The State home must report the census of each program 
and submit a claim for per diem payments monthly on VA Form 10-5588. 
See Sec.  51.42 of this rulemaking. By statute, VA ``shall have no 
authority over the management or control of any State home.'' 38 U.S.C. 
1742(b). We believe establishing the regulation the commenter seeks 
would constitute management or control of State homes, contrary to the 
statute, and would violate that law. We make no change based on this 
comment.
    Regarding the commenters' grievances relating to specific State 
homes, VA takes reports of grievances from residents of State home 
domiciliaries seriously; however, VA is unable to adjudicate the 
grievances in this rulemaking. The commenters are encouraged to voice 
their grievances directly with the State homes, which are better able 
to address such grievances. We note that Sec.  51.300 now makes the 
nursing home standards regarding grievances applicable to State 
domiciliary care programs and these standards include the resident's 
right to voice grievances and have the facility implement prompt 
efforts to resolve these grievances. We further note that State homes 
must satisfy these standards to receive per diem. Again, specific 
allegations are best raised directly with the State home. VA therefore 
makes no changes based on this comment.
    Regarding application of all of the State home nursing home program 
regulations to State home domiciliary care programs, we decline to do 
so for the reasons previously stated in this preamble. To briefly 
reiterate, many nursing home regulations would provide little benefit 
to domiciliary residents, or even be a detrimental burden, while 
imposing excessive operational constraints and costs on the States. 
This rulemaking, however, applies to the domiciliary care programs

[[Page 61266]]

those nursing care program regulations necessary to the health, safety, 
and well-being of domiciliary residents. See, for example, the 
discussion of Sec.  51.300, above. VA therefore makes no changes based 
on this comment.
    We decline to implement the request the commenter submitted in the 
form of a suggested VA General Counsel opinion the commenter authored 
seeking to have the Secretary of Veterans Affairs assign certain named 
VA officers to implement the requested changes. The Secretary's 
statutory authority includes delegation of certain authority to certain 
subordinate VA officers, but direct assignment of responsibilities to 
specific VA officers is beyond the scope of this rulemaking. VA 
therefore makes no changes based on this comment.
    VA received comments recommending that part 51 ``further define the 
sovereign powers of the Resident Councils.'' The commenter proposed the 
creation of a National Association of State Veterans Homes Domiciliary 
Residents' Councils under the auspices of VA Geriatric and Extended 
Care Services. The commenter provided some details as to how the 
relationship should be between council members, residents and a VA 
liaison. The commenter also requested that VA provide whistleblower 
protections for State home residents who report unethical, illegal, or 
criminal conduct by a State home or VA employee or office, so that 
State homes cannot evict residents for speaking up.
    Although we decline to make the specific changes this commenter 
requested, this rulemaking does implement protections for State home 
domiciliary residents that formerly applied only to nursing home 
residents. Section 51.300 requires domiciliaries to apply the 
provisions of Sec. Sec.  51.70 and 51.100 not otherwise excluded from 
Sec.  51.300. Among these are Sec.  51.70(b)(6)(ii) requiring the State 
home to notify residents of the right to file complaints; Sec.  
51.70(j)(1)(iv) guaranteeing access to the State long term care 
ombudsman; Sec.  51.100(c) requiring the State home to document any 
concerns the resident council submits; and Sec.  51.100(d)(6) requiring 
the State home to listen to the views of any resident or family group, 
including the resident council, regarding policy and operations 
decisions affecting resident care and life in the facility. State home 
domiciliary residents thus will now have recourse for redress of 
grievances. We therefore make no change based on this comment.

Subpart F--Standards Applicable to the Payment of Per Diem for 
Adult Day Health Care

51.410 Transfer and Discharge

    We have clarified the language of proposed Sec.  51.410(b), which 
provides the residents' right to be informed about the possible reasons 
for a transfer or discharge from the program. We make no substantive 
changes.
    We have changed the proposed heading of paragraph (c) to read, 
``Notice before transfer or discharge.'', to be more descriptive of the 
text of the paragraph.
    VA received comments asking to revise paragraph (c)(1), which 
requires the State home to notify the participant or his or her legal 
representative prior to a transfer or discharge. The commenters wanted 
``or'' in the first sentence to be revised to ``and/or''. VA believes 
that the intent of this recommendation is to allow the State homes to 
notify, or ensure the State homes notify, both participants and their 
legal representatives. In fact, the requirement to notify the 
participant or the representative does not preclude the State home from 
notifying both if that is the participant's choice. The ``and'' 
alternative of ``and/or'' would, however, permit the provision to be 
read as requiring notice to the participant ``and'' to the 
representative. We intend to afford the participant control of whether 
the State home notifies a legal representative, a family member, or 
both. On further review, we see that as written, ``Notify the 
participant or the legal representative of the participant,'' could 
permit the State home to notify someone other than the participant and 
not notify the participant. To make clear the participant's right to 
decide who besides the participant the State home notifies of a 
transfer or discharge, we are revising Sec.  51.410(c)(1) to read as 
does the revision to the domiciliary notice of transfer or discharge 
provision, discussed above. As revised, paragraph (c)(1) reads, 
``Notify the resident of the transfer or discharge and the reasons for 
the move in writing and in a language and manner he or she understands. 
The resident has the right to decide whether to have the State home 
notify his or her legal representative or interested family member of 
changes.''.
    VA received a comment requesting changes to Sec.  51.410(e)(5), 
which as proposed read, ``The name, address and telephone number of the 
State long-term care ombudsman.'' The commenter stated the Older 
Americans Act Ombudsman program did not apply to adult day health care 
programs and recommended paragraph (e)(5) be revised as follows: ``The 
name address and telephone number of the State home's State Department 
of Health and/or the appropriate State Department of Social Services 
representative.''
    The commenter raised the prospect that a State might not have an 
ombudsman who advocates for participants in a State home adult day 
health care program. The proposed requirement derives from Sec.  
52.70(h)(1)(iii), which requires State home program management to 
provide the State long-term care ombudsman with immediate access to 
participants. The object of proposed Sec.  51.410(e)(5) was to ensure 
the notice of transfer or discharge includes information how to seek 
help if the participant objects to the transfer or discharge. We are 
changing Sec.  51.410(e)(5) to address the possibility that a State 
does not have a long-term care ombudsman or any ombudsman responsive to 
State home adult day health care participants. We decline to use the 
``and/or'' construction the commenter suggested, because it would 
permit the State to provide the contact information only for an 
impersonal state agency possibly difficult to navigate instead of 
providing the contact information of an ombudsman or other known 
advocate. We acknowledge, however, that the proposed requirement could 
be insufficient. We are changing paragraph (e)(5) by adding ``the first 
listed of the following that exists in the State:'' following ``The 
name, address and telephone number of''. We are further revising the 
paragraph by adding after the paragraph (e) introductory language, the 
following: ``(i) The State long-term care ombudsman, if the long-term 
care ombudsman serves adult day health care facilities; or (ii) Any 
State ombudsman or advocate who serves adult day health care 
participants; or (iii) The State agency responsible for oversight of 
State adult day care facilities.'' We intend the order of precedence 
and other changes to afford the participants the intended protection, 
with little additional burden to the State homes. These changes are a 
logical outgrowth of the comment. We have removed from proposed 
paragraph (g)(1) the phrase ``, and ensured of timely admission to the 
hospital''. We have also changed ``and'' to ``or'' in both instances of 
the phrase ``transfer and discharge.'' The State home will transfer 
``or'' discharge a participant, as circumstances require. There is no 
action called ``transfer and discharge.'' As revised, the paragraph 
reads, ``Participants will be given a transfer or discharge from the 
adult day health care program to the hospital when transfer or

[[Page 61267]]

discharge is medically appropriate as determined by a physician''. 
Neither VA nor the State home can ensure timely admission to a 
hospital; timeliness of admission is beyond VA and the State home's 
control. In practice, a transfer or discharge to a hospital will result 
in admission, observation, or other action according to the 
participant's medical condition and the usual medical and business 
practice of the hospital.

51.420 Quality of Life

    VA received comments objecting to the storage requirement of Sec.  
51.420(g)(3), saying that in the State homes' experience, adult day 
health care participants need lockable storage on a very limited basis 
because they do not live at the State home. They recommended the 
participants be made aware that lockable storage is available, and that 
the homes provide it upon request. They suggested a locked closet with 
individual storage bins would be sufficient to secure a participant's 
change of clothes, and that the State home should also provide a coat 
closet for daily storage of coats, etc.
    We agree that the proposed individually lockable storage is not 
necessary in the adult day health care setting. We proposed that each 
private storage space be lockable to afford security for wallets, 
purses, and the like, and we agree the availability of locked storage 
for those who wish to use it is sufficient. Accordingly, we have 
changed Sec.  51.420(g)(3) to read, ``Private storage space for each 
participant sufficient for a change of clothes. Upon request of the 
participant, the State home must offer storage space that can be 
secured with a lock.''

51.425 Physician Orders and Participant Medical Assessment

    As proposed, this section provided for two types of assessments, 
and as a result of the comments we received we have changed the names 
of these assessments in the final rule for clarity and to distinguish 
the initial medical assessment to determine that the veteran is 
suitable for and well enough to participate in the program and the 
subsequent assessment done to inform the comprehensive care plan. The 
assessment that was proposed in paragraph (a) is now called the 
``initial medical assessment'' and the assessment in Sec.  51.425(b) is 
now called the ``comprehensive assessment'' throughout the paragraph.
    VA received comments that the requirement of Sec.  51.425(a) for 
new adult day health care participants to have tuberculosis (TB) 
screening no sooner than 30 days before admission to the program would 
be an undue hardship on the participant or the participant's care giver 
because screening can take multiple doctor's office visits. The 
commenters, referencing an unpublished report of the Centers for 
Disease Control and Prevention, acknowledged that ``elderly nursing 
home residents are at greater risk for [TB] than elderly persons living 
in the community.'' They noted current VA practice is to allow TB 
screening upon admission. The commenters requested VA also allow the TB 
screening to be performed at the adult day health care program no later 
than 30 days after admission, which would reduce care-giver burden and 
facilitate admission by eliminating a potential cause of delay.
    We agree that allowing the TB screening to be performed after 
admission to the adult day healthcare program could reduce the veteran 
and caregiver's burden and facilitate admission. We disagree, however, 
that 30 days after admission is an appropriate timeframe to complete 
screening because of the increased risk of TB among the participant 
population that the commenter identified. We also believe it is unsafe 
to have a participant in the program any longer than that with his or 
her medical history and current condition unknown. To allow more 
flexibility than the proposed rule allowed, while also requiring the 
history and physical examination with TB testing be done expeditiously, 
we have changed Sec.  51.425(a) to allow them to be done no later than 
7 calendar days after admission.
    VA received comments regarding proposed Sec.  51.425(b), which 
describes the State home adult day health care program's responsibility 
to conduct comprehensive assessments for each participant, and lists 
factors the program should consider in each assessment. The commenters 
recommended that instead of the assessment guidelines in this 
regulation, VA should allow each State with an established adult day 
health care program assessment tool to use it, and that States without 
assessment tools should work with a select group of members of the 
National Association of State Veterans Homes to develop an assessment 
tool to adopt as a national standard and submit to VA as an 
alternative. The commenters noted that the existing regulation requires 
each adult day health care program use the MDS-HC assessment tool, even 
though it is not an ``industry standard'' among adult day healthcare 
programs, and creating a new tool would solve the existing problem of 
the lack of a nationally recognized assessment tool and better serve 
the programs and veterans.
    As with the assessments for domiciliary care programs, VA will not 
change the regulation to explicitly allow State home adult day health 
care programs to use State-mandated assessment tools, though the homes 
may do so if those tools meet the requirements in paragraph Sec.  
51.425(b). While we appreciate the offer to collaborate on a national 
tool, we believe that Sec.  51.425(b) provides the States with 
necessary flexibility to create policies to meet their state's 
regulatory requirements or their program's needs, while ensuring the 
health and well-being of participants. We have added an introduction 
requiring the State home to establish in a written policy how it will 
complete, implement, review, and revise assessments. In addition to 
affording the State homes flexibility in devising their methods of 
assessment, the introduction helps to distinguish between the initial 
medical assessment and the subsequent comprehensive assessment.
    VA received comments recommending that programs should make every 
effort to coordinate the participant's comprehensive care plan with any 
existing VA or community provider's comprehensive care plans, as 
appropriate. The commenters noted many participants seek admission to 
the State home adult day health care program without prior use of VA 
services, and often prefer and plan to continue to use their community 
physician for primary care. Because the State home is ultimately 
responsible for the care and services provided to each participant, the 
commenters said they should develop a comprehensive care plan that 
includes the recommendations of other agencies, including VA.
    We agree with these comments. We believe it is consistent with the 
State home's responsibility to develop the comprehensive care plan that 
those plans include the recommendations of others providing care to the 
participant. We believe Sec.  51.425 allows the State home to include 
the use or adaptation of existing care plans in its assessment and 
comprehensive care plan policy. We make no change based on this 
comment.
    Based on the comments regarding Sec.  51.425(b) pointing out that 
some participants enter State home adult day health care programs 
without a current care plan, we are removing the requirement from 
proposed Sec.  51.425(b) that the participant have an individualized 
comprehensive care plan on ``the participant's first visit'' because 
the requirement is unnecessarily

[[Page 61268]]

burdensome. Instead, we are requiring that the State home complete the 
comprehensive assessment no later than 14 calendar days after 
admission.
    Consistent with the comment that residents might not have a 
comprehensive care plan upon admission, we are revising proposed 
paragraph (d) to allow up to 21 calendar days after admission for the 
State to write a comprehensive care plan for each participant.
    We changed certain word choices and phrasing in paragraph (c), but 
none has substantive effect. We pluralized the word ``assessment'' in 
the section heading, and rephrased the first sentence of paragraph 
(c)(1) to clarify that the assessments must be both conducted and 
coordinated with the appropriate health care professionals. We changed 
``the assessment'' to ``an assessment'' in (c)(2) to ensure all 
assessments are certified. We added (c)(3), ``The results of the 
assessments must be used to develop, review, and revise the 
participant's individualized comprehensive care plan.'' This provision 
makes clear the ongoing relationships among the participant's 
assessments, changing condition, and comprehensive care plan.

51.430 Quality of Care

    We are making technical corrections to proposed paragraph (a)(2) of 
this section. We are removing ``, review, and prevent'' from the 
paragraph heading to more accurately state the topic of the paragraph. 
As proposed, the heading ``Duty to report, review, and prevent sentinel 
events'' commingled the topics of paragraphs (a)(2) and (a)(3). We are 
also striking from Sec.  51.430(a)(2) the phrase ``, review, and 
prevent'', because Sec.  51.430(a)(2) is solely a notice provision, as 
is Sec.  51.120(a)(3) from which it derives. We are also removing the 
reference to Sec.  51.120(a)(4) from proposed Sec.  51.430(a)(2) 
because Sec.  51.120(a)(4) is the review, analysis, and prevention 
provision applicable to nursing homes. The mandate to review, analyze 
and prevent sentinel events in adult day health care programs derives 
from Sec.  52.120(a)(4) and is restated in proposed Sec.  51.430(a)(3). 
Additionally, Sec.  51.120(a)(4) has a final sentence we did not intend 
to apply to Sec.  51.430(a)(3). We referred to Sec.  51.120(a)(4) in 
proposed Sec.  51.430 erroneously.

51.440 Dietary Services

    We have changed the second sentence of proposed Sec.  51.440 so the 
references in Sec.  51.140 to ``resident'' apply to a participant ``in 
subpart F.'' This clarifies the scope of the application of Sec.  
51.140 to the adult day health care program. Because of the other 
changes we are making to this section, discussed below, the text 
proposed as Sec.  51.440 is now the introductory paragraph of the 
section.
    To make the per diem regulations more concise and to eliminate 
repetition between current parts 51 and 52 of title 38 Code of Federal 
Regulations, we proposed that Sec.  51.440 would apply the nursing home 
dietary service provisions of current Sec.  51.140 to the adult day 
health care program. That was partly a mistake. The proposal 
inadvertently applied nursing home requirements for frequency of meals 
under Sec.  51.140(f) that would be inapplicable to adult day health 
care programs. For example, the nursing home bedtime snack requirements 
have no application to a daytime only program. To correct this error, 
we have revised the introduction of Sec.  51.440 to exclude application 
of Sec.  51.140(f), and added the mealtime requirements of current 
Sec.  52.140(e)(1) and (2) as paragraphs (a) and (b). These 
requirements are essential to ensure every adult day health care 
participant receives at least minimal nourishment during each session. 
Adding these requirements imposes no new burden on the State homes. 
They merely continue the current timing and nutritional requirements of 
the adult day health care program without change.

51.445 Physician Services

    We are revising the introduction of Sec.  51.445. The proposed 
language mistakenly refers to a physician's order for enrollment, but 
physicians don't write orders to enroll participants in the adult day 
health care program; they write orders to admit participants. We have 
corrected this error in terminology. We have also revised the next to 
last sentence to be more readable. As revised, the sentence reads, ``If 
a participant's medical needs require that the participant be placed in 
an adult day health care program that offers medical supervision, the 
primary care physician must state so in the order for admission.''
    VA received comments recommending that VA require all State home 
adult day health care programs undertake certain practices such as: 
recording the name of the participant's primary care physician in his 
or her medical record; requiring that each participant see a primary 
care physician annually and when there is a change in condition; 
providing or arranging for acute care when a resident needs it; and 
ensuring participants are able to obtain emergency care when necessary. 
The commenters believed these practices should not be restricted only 
to adult day health care programs that offer medical supervision.
    We agree with the first of these recommendations. As proposed, the 
provision requiring the State home to record the name of each 
participant's primary care physician is in paragraph (a) of this 
section, which applies specifically to programs that offer medical 
supervision. To apply it to all adult day health care program 
participants, we have moved the requirement from proposed paragraph 
(a)(2) to the introductory paragraph of this regulation in the final 
rule, where it applies to the entire section. We redesignated proposed 
paragraph (a)(3) as (a)(2).
    We decline to require that each participant who is in a program 
that does not offer medical supervision see a primary care physician 
annually, because such a requirement is unnecessary for all adult day 
health care programs. We make no change based on this comment.
    We decline to require programs that do not offer medical 
supervision to provide for acute care. State homes may choose to make 
acute care available, but those services are not by design the intent 
of social model programs. We make no change based on this comment.
    Regarding the final recommendation, proposed paragraph (d), 
Availability of physicians for emergency care, does require that the 
management of all adult day health care programs ``must ensure that 
participants are able to obtain necessary emergency care,'' and the 
paragraph applies to all adult day health care programs. As with 
domiciliaries, the State home can meet the requirement by calling 911 
emergency services on behalf of the participant. The State home may 
provide physicians for emergency care, but VA will not require it. We 
make no change based on this comment.

51.455 Dental Services

    For clarity, we have inserted the word ``dental'' into paragraph 
Sec.  4.455(a)(1) as proposed to read, ``In making dental appointments; 
and''.

51.470 Physical Environment

    We have changed Sec.  51.470(a), Life safety from fire, to read, 
``The State home must meet the applicable requirements of National Fire 
Protection Association's NFPA 101, Life Safety from fire, as 
incorporated by reference in Sec.  51.200.'' We determined that the 
proposed language was confusing regarding which NFPA codes applied to 
State home adult day health care programs. This change is for clarity 
only.

[[Page 61269]]

    VA received comments agreeing with the space requirements proposed 
in Sec.  51.470(b), but only for adult day health care programs with 
medical supervision. They suggested less space be required for programs 
that do not provide intensive medical services. Specifically, they 
suggested at least 70 square feet per participant, including office 
space for staff, as opposed to the 100 square feet required in the 
proposed rule; and 40 square feet per participant, excluding office 
space for staff, as opposed to the 60 square feet required in the 
proposed rule. They said programs that do not provide intensive medical 
services do not require the same space as those that do, because they 
do not provide rehabilitative services or require the same specialized 
equipment as medical model programs.
    The space requirements in proposed Sec.  51.470(b)(3) are the same 
as the ones in current Sec.  52.200(b)(3). Moreover, they are the same 
standards VA imposes on VA adult day health care facilities. Likewise, 
we specify these space allotments in the standards for funding VA 
construction grants. See 38 CFR part 59. We specify these space 
allotments because we consider them essential to the health, safety, 
and well-being of the participants. We make no changes based on this 
comment.

51.480 Transportation

    We received comments requesting that VA provide transportation 
reimbursement to State homes that provide their residents 
transportation to a VA medical center for medical care, noting VA 
reimburses veterans for mileage when traveling to and from a VA medical 
facility for medical services.
    The commenter is correct that VA reimburses veterans for their 
travel expenses through the Beneficiary Travel program. Veteran 
residents of a State home may be eligible for Beneficiary Travel 
depending on the purpose of the travel and other factors. Similarly, VA 
may make a beneficiary travel payment to a person or organization other 
than the beneficiary when certain factors are met. 38 CFR 70.2 and 
70.20 (defining ``claimant'' for beneficiary travel payments and 
explaining the application for payment process). This is addressed more 
fully in 38 CFR part 70. We make no change based on this comment.

Other Issues

    One commenter commented on VA's definition of ``State'' in proposed 
Sec.  51.2. The commenter said that a judicial decision requires the 
terms ``state'' and ``federal'' be interpreted to encompass any medical 
care a veteran obtains under the Affordable Care Act anywhere in the 
world. King v. Burwell, 576 U.S. ____(2015). By this interpretation, 
the commenter argued, VA must pay per diem to any veteran wherever in 
the world the veteran resides. The commenter advised VA to allow 
Congress to draft the per diem regulations to determine VA's 
logistical, financial, and fiduciary responsibilities.
    VA was not a party to King v. Burwell, 576 U.S. ____(2015), and 
nothing it decided is binding on VA's payment of per diem to State 
homes. By law, VA cannot delegate the task of writing regulations for 
the State home program to Congress. In fact, Congress has directed VA 
to prescribe regulations which are necessary and appropriate to carry 
out laws administered by VA which would include the laws governing the 
payment of state home per diem and standards for State programs 
receiving such payments. 38 U.S.C. 501. We make no changes in response 
to this comment.
    VA received a comment suggesting we revise the subject heading of 
this rulemaking to read, ``Per Diem for Nursing Home, Domiciliary, or 
Adult Day Health Care of Veterans in State Homes.'' The commenter 
recommended this rulemaking keep the organization and scope of the 
proposed rule in several respects. Specifically, that subpart D 
continues to provide regulations for nursing home care programs and 
part E for domiciliary care programs.
    We decline to change the name of the final rule as the current name 
adequately describes the content of the rule, and we are keeping the 
subpart headings and their topics as proposed. We make no change in 
response to this comment.
    The commenter commented that VA should require each State home to 
employ a regulatory compliance officer who will be a VA employee who 
resides in the State home to insure the home's compliance with all VA 
regulations.
    VA uses regular surveys of the State homes to ensure compliance 
with VA regulations governing VA payment of per diem. VA lacks 
authority to place VA employees on a State home's staff, and adopting 
this recommendation would blur the line between VA and the State home's 
independent management. We make no change based on this comment.
    In a related comment, another commenter asserted this rulemaking as 
proposed fails to establish a firm and effective system of legal 
enforcement by the VA of regulatory compliance and legislative 
oversight by State Veterans Homes (SVH) of VA Domiciliary Care 
Standards. A firm and effective VA regulatory enforcement mechanism 
must be established with respect to State Veterans Homes for the new VA 
regulation on VA-SVH Domiciliary Care Standards to have maximum 
positive force and effect.
    The commenter recommended enforcing a more visible, professional 
and proactive role for the State Veterans Home [VISN] Liaison or for 
the SVH VA Medical Facility Representative as those positions were 
described in VHA Handbook 1145.01, Survey Procedures for State Veterans 
Homes (SVH) Providing Nursing Home Care and/or Adult Day Health Care 
(May 17, 2010). The commenter suggested adding certain duties to those 
assigned VA officers, including prescribing that VA notify State home 
residents and resident councils of the existence of these liaison 
officers, and that those duties be enforced by legislative directives 
in this rulemaking. The commenter urged that this rulemaking require 
State Departments of Veterans Affairs to ``a) promulgate state 
legislation that provides regulatory oversight of State Veterans Homes 
management, administration and operations; and b) promulgate state 
legislation that provides for the regulatory compliance by State 
Veterans Homes of VA Program Regulations.''
    VA cannot require States to legislate. We disagree about whether 
this rulemaking provides effective means to ensure compliance with 
these regulations. We believe the processes prescribed in this 
rulemaking provide an effective means of oversight and enforcement of 
compliance with these regulations. These include the surveys for 
recognition and subsequent certification, provisional certification if 
needed, and potentially denial of certification, together with the 
multiple standards the State home must meet to obtain recognition and 
certification under part 51. Further, we decline to revise the duties 
of the VA officers as any such consideration would be beyond the scope 
of this rulemaking.
    The same commenter sought amendments of Sec. Sec.  51.70 and 
51.100, providing specific language. Specifically, the commenter sought 
amendments of Sec.  51.70(a)(1), (a)(2), (b)(9)(ii), (f), (j)(1)(iv), 
(j)(3), and (m) (including extensive suggestions for creation and 
management of married quarters); Sec.  51.100(c), (d), (f), and (i).
    This comment is distinguishable from the others that addressed the 
proposed rule's application of Sec. Sec.  51.70 and 51.100 to the 
domiciliary care program because it seeks amendment of Sec. Sec.  51.70 
and 51.100. This rulemaking did not

[[Page 61270]]

propose to amend those sections, and VA declines to make any such 
amendments in this final rulemaking, without providing an adequate 
period for notice and comment. We will consider these comments for 
possible future amendment of Sec. Sec.  51.70 and 51.100. We make no 
changes here based on these comments.
    VA received a comment saying that as a resident of a State home in 
a remote location, a requirement to provide accommodations for family 
members to stay on special occasions would be a great benefit to 
veterans with families, and even to those without, but who would 
remember the happiness of family life and enjoy the presence of 
families. Another commenter urged VA to require State homes to provide 
private family visitation space, reporting that family has not visited 
during the resident's 13 years of residence in a State home for lack of 
a private visitation room or space.
    We appreciate the commenters' desire for State homes to facilitate 
family visits this way and certainly encourage State homes to do what 
they can to facilitate family visits. However, providing accommodations 
for visiting family could be a significant expense for State homes. We 
thus make no change based on this comment.
    VA received a comment that State politics and corruption take 
precedence over State home residents' welfare. The commenter proposed 
creation of an oversight group to take legal action against misuse of 
Federal funds, lest the funds that States have earmarked for the care 
of Veterans disappear into other accounts in each state.
    While we understand the commenter has concerns, the solution the 
commenter seeks is beyond the scope of this rulemaking. Consequently, 
we make no changes based on this comment.
    One commenter asked that VA ``coordinate the impact of the semantic 
differential between terms,'' i.e., define terms the same in Veterans 
Health Administration (VHA) regulations in 38 CFR part 51 and Veterans 
Benefits Administration (VBA) regulations in 38 CFR parts 3 and 4. The 
commenter asserted differences in the use or definition of the same or 
similar terms could affect how and to whom VBA awards special monthly 
compensation benefits or aid and attendance benefits under part 3, or 
temporary total disability evaluations under part 4. The commenter 
asserts VA regulations are unclear regarding whether a veteran's 
residency in a State home can qualify for special monthly compensation 
or pension rates that use nursing home care as a criterion of 
entitlement. The commenter also urged VA to apply 38 U.S.C. 1151, 
Benefits for persons disabled by treatment or vocational 
rehabilitation, to disability incurred in State homes receiving VA per 
diem payments. The commenter inquired of the significance of residence 
in a State home to a veteran's VA disability compensation or pension 
payments. The commenter asserted VA is creating additional burdens for 
states and confusion through lack of consistency and clarity throughout 
its regulations, like that resulting from conflict of laws regarding 
pensioners getting Medicaid-covered nursing home care.
    The commenter raises points worthy of legal review and perhaps of 
rulemaking. It is beyond the scope of this rulemaking to harmonize 
definitions among parts 3, 4, and 51 of title 38, Code of Federal 
Regulations. The application of definitions in this rulemaking to 
claims for monetary benefits the VBA administers, including benefits 
under 38 U.S.C. 1151, and the effect of residency in a State home on 
any veteran's monetary benefits, are appropriately addressed in an 
individual claim to VBA for those benefits. They too are beyond the 
scope of this rulemaking. Whereas the commenter has raised no issue 
regarding, or requested any change to, the proposed regulations that 
are within the scope of this rulemaking, we make no changes based on 
this comment.
    Based on the rationale set forth in the supplementary information 
to the proposed rule and in the preceding discussion, VA is adopting 
the provisions of the proposed rule as final, with changes as noted.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as revised by this 
final rule, represents VA's implementation of its legal authority on 
this subject. Other than future amendments to this regulation or 
governing statutes, no contrary guidance or procedures are authorized. 
All existing or subsequent VA guidance must be read to conform with 
this rulemaking if possible. If not possible, this rulemaking 
supersedes such guidance.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507) requires that 
VA consider the impact of paperwork and other information collection 
burdens imposed on the public. Under 44 U.S.C. 3507(a), an agency may 
not collect or sponsor the collection of information, nor may it impose 
an information collection requirement, unless it displays a currently 
valid Office of Management and Budget (OMB) control number. See also 5 
CFR 1320.8(b)(3)(vi).
    Although this action contains provisions constituting collections 
of information at 38 CFR 51.20, 51.30, 51.31, 51.42, 51.210, 51.300, 
51.310, 51.320, 51.350, 51.390, 51.400, 51.405, 51.410, 51.415, 51.420, 
51.425, 51.430, 51.445, 51.460, and 51.475 under the provisions of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), no new or 
proposed revised collections of information are associated with this 
final rule. The information collection requirements for Sec. Sec.  
51.20, 51.30, 51.31, 51.42, 51.210, 51.300, 51.310, 51.320, 51.350, 
51.390, 51.400, 51.405, 51.410, 51.415, 51.420, 51.425, 51.430, 51.445, 
51.460, and 51.475 are currently approved by the Office of Management 
and Budget (OMB) and have been assigned OMB control number 2900-0160.
    Section 51.42 also provides for information collection. The OMB 
currently approves this information collection under control number 
2900-0091.

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-
612. This rule affects veterans, State homes, and pharmacies. The State 
homes that are subject to this rulemaking are State government entities 
under the control of State governments. All State homes are owned, 
operated, and managed by State governments or nonprofit organizations 
created by the State except for a small number that are operated by 
entities under contract with State governments. These contractors are 
not small entities. Also, this rulemaking will not have a consequential 
effect on any pharmacies that could be considered small entities. 
Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking is exempt from 
the final regulatory flexibility analysis requirements of sections 603 
and 604.

Executive Orders 12866, 13563, and 13771

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review)

[[Page 61271]]

emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting flexibility. Executive 
Order 12866 (Regulatory Planning and Review) defines a ``significant 
regulatory action,'' requiring review by OMB, unless OMB waives such 
review, as ``any regulatory action that is likely to result in a rule 
that may: (1) Have an annual effect on the economy of $100 million or 
more or adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; (2) Create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (3) Materially alter 
the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients thereof; or (4) 
Raise novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in this Executive 
Order.''
    OMB has examined the economic, interagency, budgetary, legal, and 
policy implications of this regulatory action and it has been 
determined not to be a significant regulatory action under Executive 
Order 12866. VA's regulatory impact analysis can be found as a 
supporting document at http://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its regulatory impact analysis are available on 
VA's website at http://www.va.gov/orpm/, by following the link for ``VA 
Regulations Published From FY 2004 Through FYTD.'' This rule is not an 
E.O. 13771 regulatory action because this rule is not significant under 
E.O. 12866.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in an expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and tribal governments, or on the private sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this document are 64.005, Grants to States for 
Construction of State Home Facilities; 64.007, Blind Rehabilitation 
Centers; 64.008, Veterans Domiciliary Care; 64.009, Veterans Medical 
Care Benefits; 64.010, Veterans Nursing Home Care; 64.011, Veterans 
Dental Care; 64.012, Veterans Prescription Service; 64.013, Veterans 
Prosthetic Appliances; 64.014, Veterans State Domiciliary Care; 64.015, 
Veterans State Nursing Home Care; 64.016, Veterans State Hospital Care; 
64.018, Sharing Specialized Medical Resources; 64.019, Veterans 
Rehabilitation Alcohol and Drug Dependence; 64.022, Veterans Home Based 
Primary Care; 64.026, Veterans State Adult Day Health Care; and 64.053, 
Payments to States for Programs to Promote the Hiring and Retention of 
Nurses at State Veterans Homes.

List of Subjects in 38 CFR Parts 17, 51, and 52

    Administrative practice and procedure, Claims, Day care, Dental 
health, Government contracts, Grant programs--health, Grant programs--
veterans, Health care, Health facilities, Health professions, Health 
records, Mental health programs, Nursing homes, Reporting and 
recordkeeping requirements, Travel and transportation expenses, 
Veterans.

Signing Authority

    The Secretary of Veterans Affairs approved this document and 
authorized the undersigned to sign and submit the document to the 
Office of the Federal Register for publication electronically as an 
official document of the Department of Veterans Affairs. Robert L. 
Wilkie, Secretary, Department of Veterans Affairs, approved this 
document on November 9, 2018, for publication.

    Dated: November 13, 2018.
Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

    For the reasons stated in the preamble and under the authority of 
38 U.S.C. 1741-1743 and 38 U.S.C. 1745, the Department of Veterans 
Affairs is amending 38 CFR parts 17, 51, and 52 as follows:

PART 17--MEDICAL

0
1. The authority citation for part 17 continues to read as follows:

    Authority:  38 U.S.C. 501, and as noted in specific sections.


Sec.  Sec.  17.190-17.194  [Removed].

0
2. Remove the undesignated center heading ``Aid to States for Care of 
Veterans in State Homes'' and Sec. Sec.  17.190 through 17.194.


Sec.  Sec.  17.196-17.200  [Removed]

0
3. Remove Sec. Sec.  17.196 through 17.200.

PART 51--PER DIEM FOR NURSING HOME, DOMICILIARY, OR ADULT DAY 
HEALTH CARE OF VETERANS IN STATE HOMES

0
4. The authority citation for part 51 is amended to read as follows:

    Authority: 38 U.S.C. 101, 501, 1710, 1720, 1741-1743, 1745, and 
as follows.
    Section 51.20 and 51.30 also issued under 38 U.S.C. 511, 1742, 
7104 and 7105.
    Section 51.42 also issued under 38 U.S.C. 510 and 1744.
    Section 51.43 also issued under 38 U.S.C. 1712.
    Section 51.310 also issued under 38 U.S.C. 1720(f).


0
 5. Revise the part heading as set forth above.

0
6. Revise subpart A, consisting of Sec. Sec.  51.1 and 51.2, to read as 
follows:
Subpart A--General
Sec.
51.1 Purpose and scope of this part.
51.2 Definitions.

Subpart A--General


Sec.  51.1  Purpose and scope of this part.

    The purpose of this part is to establish VA's policies, procedures, 
and standards applicable to the payment of per diem to State homes that 
provide nursing home care, domiciliary care, or adult day health care 
to eligible veterans. Subpart B of this part sets forth the procedures 
for recognition and certification of a State home. Subpart C sets forth 
requirements governing the rates of, and procedures applicable to, the 
payment of per diem; the provision of drugs and medicines; and for 
which veterans VA will pay per diem. Subparts D, E, and F set forth 
standards that any State home seeking per diem payments for nursing 
home care (subpart D), domiciliary care (subpart E), or adult day 
health care (subpart F) must meet.


Sec.  51.2  Definitions.

    For the purposes of this part:
    Activities of daily living (ADLs) means the functions or tasks for 
self-care usually performed in the normal course of a day, i.e., 
mobility, bathing, dressing, grooming, toileting, transferring, and 
eating.
    Adult day health care means a therapeutic outpatient care program 
that includes one or more of the following services, based on patient 
care needs: Medical services, rehabilitation, therapeutic activities, 
socialization, and nutrition. Services are provided in a congregate 
setting.

[[Page 61272]]

    Clinical nurse specialist means a licensed professional nurse with 
a master's degree in nursing and a major in a clinical nursing 
specialty from an academic program accredited by the National League 
for Nursing.
    Director means the Director of the VA medical center of 
jurisdiction, unless the reference is specifically to another type of 
director.
    Domiciliary care means the furnishing of a home to a veteran, 
including the furnishing of shelter, food, and other comforts of home, 
and necessary medical services as defined in this part. For purposes of 
the definition of ``domiciliary care,'' necessary medical services 
means the medical services subpart E of this part requires the State 
home to provide.
    Eligible veteran means a veteran whose care in a State home may 
serve as a basis for per diem payments to the State. The requirements 
that an eligible veteran must meet are set forth in Sec. Sec.  51.50 
(nursing home care), 51.51 (domiciliary care), and 51.52 (adult day 
health care).
    Licensed medical practitioner means a nurse practitioner, 
physician, physician assistant, or primary care physician.
    Nurse practitioner means a licensed professional nurse who is 
currently licensed to practice in a State; who meets that State's 
requirements governing the qualifications of nurse practitioners; and 
who is currently certified as an adult, family, or gerontological nurse 
practitioner by a nationally recognized body that provides such 
certification for nurse practitioners, such as the American Nurses 
Credentialing Center or the American Academy of Nurse Practitioners.
    Nursing home care means the accommodation of convalescents or other 
persons who are not acutely ill and not in need of hospital care, but 
who require nursing care and related medical services, if such nursing 
care and medical services are prescribed by, or are performed under the 
general direction of, persons duly licensed to provide such care. The 
term includes services furnished in skilled nursing care facilities, in 
intermediate care facilities, and in combined facilities. It does not 
include domiciliary care.
    Participant means an individual receiving adult day health care.
    Physician means a doctor of medicine or osteopathy legally 
authorized to practice medicine or surgery in the State.
    Physician assistant means a person who meets the applicable State 
requirements for a physician assistant, is currently certified by the 
National Commission on Certification of Physician Assistants as a 
physician assistant, and has an individualized written scope of 
practice that determines the authorization to write medical orders, to 
prescribe medications, and to accomplish other clinical tasks under 
appropriate physician supervision.
    Primary care physician means a designated generalist physician 
responsible for providing, directing, and coordinating health care that 
is indicated for the residents or participants.
    Program of care means any or all of the three levels of care for 
which VA may pay per diem under this part.
    Resident means an individual receiving nursing home or domiciliary 
care.
    State means each of the several States, the District of Columbia, 
the Virgin Islands, the Commonwealth of Puerto Rico, Guam, the 
Commonwealth of the Northern Mariana Islands, and American Samoa.
    State home means a home recognized and, to the extent required by 
this part, certified pursuant to this part that a State established 
primarily for veterans disabled by age, disease, or otherwise, who by 
reason of such disability are incapable of earning a living. A State 
home must provide at least one program of care (i.e., domiciliary care, 
nursing home care, or adult day health care).
    VA means the U.S. Department of Veterans Affairs.
    Veteran means a veteran under 38 U.S.C. 101.

0
7. Revise subpart B, consisting of Sec. Sec.  51.20 and 51.30 through 
51.32, to read as follows:
Subpart B--Obtaining Recognition and Certification for per Diem 
Payments
Sec.
51.20 Recognition of a State home.
51.30 Certification of a State home.
51.31 Surveys for recognition and/or certification.
51.32 Terminating recognition.

Subpart B--Obtaining Recognition and Certification for per Diem 
Payments


Sec.  51.20   Recognition of a State home.

    (a) How to apply for recognition. To apply for recognition of a 
home for purposes of receiving per diem from VA, a State must submit a 
letter requesting recognition to the Office of Geriatrics and Extended 
Care in VA Central Office, 810 Vermont Avenue NW, Washington, DC 20420. 
The letter must be signed by the State official authorized to make the 
request. The letter will be reviewed by VA, in accordance with this 
section.
    (b) Survey and recommendation by Director. (1) After receipt of a 
letter requesting recognition, VA will survey the home in accordance 
with Sec.  51.31 to determine whether the facility and program of care 
meet the applicable requirements of subpart C and the applicable 
standards in subpart D, E, or F of this part. For purposes of the 
recognition process including the survey, references to State homes in 
the standards apply to homes that are being considered by VA for 
recognition as State homes.
    (2) If the Director of the VA Medical Center of jurisdiction 
determines that the applicable requirements and standards are met, the 
Director will submit a written recommendation for recognition to the 
Under Secretary for Health.
    (3) If the Director does not recommend recognition, the Director 
will submit a written recommendation against recognition to the Under 
Secretary for Health and will notify in writing the State official who 
signed the letter submitted under paragraph (a) of this section and the 
State official authorized to oversee operations of the home. The 
notification will state the following:
    (i) The specific standard(s) not met; and
    (ii) The State's right to submit a response to the Under Secretary 
for Health, including any additional evidence, no later than 30 
calendar days after the date of the notification to the State.
    (c) Decision by the Under Secretary for Health. After receipt of a 
recommendation from the Director, and allowing 30 calendar days for the 
state to respond to a negative recommendation and to submit evidence, 
the Under Secretary for Health will award or deny recognition based on 
all available evidence. The applicant will be notified of the decision 
in writing. Adverse decisions may be appealed to the Board of Veterans' 
Appeals (see 38 CFR part 20).
    (d) Effect of recognition. (1) Recognition of a State home means 
that, at the time of recognition, the facility and its program of care 
meet the applicable requirements of this part. The State home must 
obtain certification after recognition in accordance with Sec.  51.30.
    (2) After a State home is recognized, any new annex, new branch, or 
other expansion in the size or capacity of a home or any relocation of 
the home to a new facility must be separately recognized.

(The Office of Management and Budget has approved the information 
collection

[[Page 61273]]

requirements in this section under control number 2900-0161.)


Sec.  51.30   Certification of a State home.

    (a) General certification requirement. To be certified, the State 
home must allow VA to survey the home in accordance with Sec.  51.31. A 
State home must be certified no later than 450 calendar days after the 
State home is recognized. Certifications expire 600 calendar days after 
the date of their issuance.
    (b) Periodic certifications required. The Director of the VA 
medical center of jurisdiction will certify a State home based on a 
survey conducted at least once every 270-450 calendar days, at VA's 
discretion, and will notify the State official authorized to oversee 
operations of the State home of the decision regarding certification.
    (c) Decreasing capacity for a program of care. The State must 
report any decreases in the capacity for a particular program of care 
to the Office of Geriatrics and Extended Care in VA Central Office, 810 
Vermont Avenue NW, Washington, DC 20420 no later than 30 calendar days 
after such decrease, and must provide an explanation for the decrease.
    (d) Provisional certification--(1) When issuance is required. After 
a VA survey, the Director must issue a provisional certification for 
the surveyed State home if the Director determines that all of the 
following are true:
    (i) The State home does not meet one or more of the applicable 
requirements or standards in this part;
    (ii) None of these deficiencies immediately jeopardize the health 
or safety of any resident or participant;
    (iii) No later than 20 working days after receipt by the State home 
of the survey report, the State submitted to the Director a written 
plan to remedy each deficiency in a specified amount of time; and
    (iv) The plan is reasonable and the Director has sent a written 
notice to the appropriate person(s) at the State home informing him or 
her that the Director agrees to the plan.
    (2) Surveys to continue while under provisional certification. VA 
will continue to survey the State home while it is under a provisional 
certification in accordance with this section and Sec.  51.31. After 
such a survey, the Director will continue the provisional certification 
if the Director determines that the four criteria listed in paragraphs 
(c)(1)(i)-(iv) of this section are true.
    (e) Notice and the right to appeal a denial of certification. A 
State home has the right to appeal when the Director determines that a 
State home does not meet the requirements of this part (i.e., denies 
certification). An appeal is not provided to a State for a State home 
that receives a provisional certification because, by providing the 
corrective action plan necessary to receive a provisional 
certification, a State demonstrates its acceptance of VA's 
determination that it does not meet the VA standards for which the 
corrective action plan was submitted.
    (1) Notice of decision denying certification. The Director will 
issue in writing a decision denying certification that sets forth the 
specific standard(s) not met. The Director will send a copy of this 
decision to the State official authorized to oversee operations of the 
State home, and notify that official of the State's right to submit a 
written appeal to the Under Secretary for Health as stated in paragraph 
(e)(2) of this section. If the State home does not submit a timely 
written appeal, the Director's decision becomes final and VA will not 
pay per diem for any care provided on or after the 31st day after the 
State's receipt of the Director's decision.
    (2) Appeal of denial of certification. The State must submit a 
written appeal no later than 30 calendar days after the date of the 
notice of the denial of certification. The appeal must explain why the 
denial of certification is inaccurate or incomplete and provide any 
relevant information not considered by the Director. Any appeal that 
does not identify a reason for disagreement will be returned to the 
sender without further consideration. If the State home submits a 
timely written appeal, the Director's decision will not take effect and 
VA will continue to pay per diem to the State home pending a decision 
by the Under Secretary for Health.
    (3) Decision on appeal of a denial of certification. The Under 
Secretary for Health will review the matter, including any relevant 
supporting documentation, and issue a written decision that affirms or 
reverses the Director's decision. The State will be notified of the 
decision, which may be appealed to the Board of Veterans' Appeals (see 
38 CFR part 20) if it results in a loss of per diem payments to the 
State. VA will terminate recognition and certification and discontinue 
per diem payments for care provided on and after the date of the Under 
Secretary for Health's decision affirming a denial of certification or 
on a later date that must be specified by the Under Secretary for 
Health.
    (f) Other appeals. Appeals of matters not addressed in this section 
will be governed by 38 CFR part 20.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0161)


Sec.  51.31  Surveys for recognition and/or certification.

    (a) General. Both before and after a home is recognized and 
certified, VA may survey the home as necessary to determine whether it 
complies with applicable regulations. VA will provide advance notice 
before a recognition survey, but advance notice is not required before 
other surveys. A survey, as necessary, may cover all parts of the home 
or only certain parts, and may include review, audit, and production of 
any records that have a bearing on compliance with the requirements of 
this part (including any reports from state or local entities), as well 
as the completion and submission to VA of all required forms. The 
Director will designate the VA officials and/or contractors to survey 
the home.
    (b) Recognition surveys. VA will not conduct a recognition survey 
unless the following minimum requirements are met:
    (1) For nursing homes and domiciliaries, the home has at least 20 
residents or has a number of residents consisting of at least 50 
percent of the resident capacity of the home;
    (2) For adult day health care programs of care, the program has at 
least 10 participants or has a number of participants consisting of at 
least 50 percent of participant capacity of the program.
    (c) Threats to public, resident, or participant safety. If VA 
identifies a condition at the home that poses an immediate threat to 
public, resident or participant safety, or other information indicating 
the existence of such a threat, the Director of the VA medical center 
of jurisdiction will immediately report this to the VA Network Director 
(10N1-22); the Office of Geriatrics and Extended Care in VA Central 
Office; and the State official authorized to oversee operations of the 
home.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.32   Terminating recognition.

    Once a home has achieved recognition, the recognition will be 
terminated only if the State requests that the recognition be 
terminated, or if VA makes a final decision that affirms the Director's 
decision not to certify the State home.

0
8. Revise the heading for subpart C to read as follows:

[[Page 61274]]

Subpart C--Requirements Applicable to Eligibility, Rates, and 
Payments

* * * * *

0
9. Revise Sec.  51.40 to read as follows:


Sec.  51.40   Basic per diem rates.

    (a) Basic rate. Except as provided in Sec.  51.41, VA will pay per 
diem for care provided to an eligible veteran at a State home at the 
lesser of the following rates:
    (1) One-half of the daily cost of the care for each day the veteran 
is in the State home, as calculated under paragraph (b) of this 
section.
    (2) The basic per diem rate for each day the veteran is in the 
State home. The basic per diem rate is established by VA for each 
fiscal year in accordance with 38 U.S.C. 1741(a) and (c).

    Note to paragraph (a): To determine the number of days that a 
veteran was in a State home, see paragraph (c) of this section.

    (b) How to calculate the daily cost of a veteran's care. The daily 
cost of care consists of those direct and indirect costs attributable 
to care at the State home, divided by the total number of residents 
serviced by the program of care. Cost principles are set forth in 
Office of Management and Budget (OMB) regulations. 2 CFR 200.400-
200.475.
    (c) Determining whether a veteran spent a day receiving nursing 
home or domiciliary care--(1) Nursing homes. VA will pay per diem for 
each day that the veteran is receiving nursing home care and has an 
overnight stay at the State home. Per diem also will be paid for a day 
when there is no overnight stay if the State home nursing home care 
program has an occupancy rate of 90 percent or greater on that day. 
However, these payments will be made only for the first 10 consecutive 
days during which the veteran is admitted as a patient for any stay in 
a VA or other hospital (a hospital stay could occur more than once in a 
calendar year once there is an overnight stay in the State home between 
hospital stays) and only for the first 12 days in a calendar year 
during which the veteran is absent for purposes other than receiving 
hospital care. Occupancy rate is calculated by dividing the total 
number of residents (including nonveterans) in the nursing home on that 
day by the total recognized nursing home capacity in that State home.
    (2) Domiciliaries. VA will pay per diem for each day that the 
veteran is receiving domiciliary care and has an overnight stay at the 
State home. VA will also pay per diem during any absence of 96 or fewer 
consecutive hours for purposes other than receiving hospital care at VA 
expense, but VA will not pay per diem for any part of the absence if it 
continues for longer than 96 consecutive hours. Absences that are not 
interrupted by at least 24 hours of continuous residence in the State 
home are considered one continuous absence.
    (d) Determining whether a Veteran spent a day receiving adult day 
health care. Per diem will be paid for a day of adult day health care. 
For purposes of this section a day of adult day health care means:
    (1) Six hours or more in one calendar day in which a veteran 
receives adult day health care; or
    (2) Any two periods of at least 3 hours each but less than 6 hours 
each in any 2 calendar days in the same calendar month in which the 
veteran receives adult day health care.
    (3) Time during which the State home provides transportation 
between the veteran's residence and the State home or to a health care 
visit, or provides staff to accompany a veteran during transportation 
or a health care visit, will be included as time the veteran receives 
adult day health care.

0
10. Revise Sec.  51.42 to read as follows:


Sec.  51.42   Payment procedures.

    (a) Forms required--(1) Forms required at time of admission or 
enrollment. As a condition for receiving payment of per diem under this 
part, the State home must submit the forms identified in paragraphs 
(a)(1)(i) and (ii) of this section to the VA medical center of 
jurisdiction for each veteran at the time of the veteran's admission to 
or enrollment in a State home. If the home is not a recognized State 
home, the home must, after recognition, submit forms for Veterans who 
received care on and after the date of the completion of the VA survey 
that provided the basis for determining that the home met the standards 
of this part. The State home must also submit the appropriate form with 
any request for a change in the type of per diem paid on behalf of a 
veteran as a result of a change in the veteran's program of care or a 
change in the veteran's service-connected disability rating that makes 
the veteran's care eligible for payment under Sec.  51.41. Copies of VA 
Forms can be obtained from any VA Medical Center and are available on 
our website at www.va.gov/vaforms. The required forms are:
    (i) A completed VA Form 10-10EZ, Application for Medical Benefits 
(or VA Form 10-10EZR, Health Benefits Renewal Form, if a completed Form 
10-10EZ is already on file at VA).

    Note 1 to paragraph (a)(1)(i): Domiciliary applicants and 
residents must complete the financial disclosure sections of VA 
Forms 10-10EZ and 10-10EZR, and adult day health care applicants may 
be required to complete the financial disclosure sections of these 
forms in order to enroll with VA. Although the nursing home 
applicants or residents or adult day health care participants do not 
complete the financial disclosure sections of VA Forms 10-10EZ and 
10-10EZR, an unsigned form is incomplete, and VA will not accept the 
form.

    (ii) A completed VA Form 10-10SH, State Home Program Application 
for Care--Medical Certification.
    (2) Form required for monthly payments. Except as provided in 
paragraphs (b)(1) and (2) of this section, VA pays per diem on a 
monthly basis for care provided during the prior month. To receive 
payment, the State must submit each month to the VA a completed VA Form 
10-5588, State Home Report and Statement of Federal Aid Claimed.
    (b) Commencement of payments--(1) Per diem payments for a newly-
recognized State home. No per diem payments will be made until VA 
recognizes the home and each veteran resident for whom VA pays per diem 
is verified as being eligible; however, per diem payments will be made 
retroactively for care that was provided on and after the date of the 
completion of the VA survey that provided the basis for determining 
that the home met the standards of this part.
    (2) Per diem payments for capacity certified under Sec.  51.30(c). 
Per diem will be paid for the care of veterans in capacity certified in 
accordance with Sec.  51.30(c) retroactive to the date of the 
completion of the survey if the Director certifies the capacity as a 
result of that survey.
    (3) Payments for eligible veterans. When a State home admits or 
enrolls an eligible veteran, VA will pay per diem under this part from 
the date of receipt of the completed forms required by this section, 
except that VA will pay per diem from the date care began if the 
Director receives the completed forms no later than 10 calendar days 
after care began. VA will make retroactive payments of per diem under 
paragraphs (b)(1) and (2) of this section only if the Director receives 
the completed forms that must be submitted under this section.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control numbers 2900-
0091 and 2900-0160.)

0
11. Revise Sec.  51.43 to read as follows:


Sec.  51.43   Drugs and medicines for certain veterans.

    (a) In addition to the per diem payments under Sec.  51.40 of this 
part, the

[[Page 61275]]

Secretary will furnish drugs and medicines to a State home as may be 
ordered by prescription of a duly licensed physician as specific 
therapy in the treatment of illness or injury for a veteran receiving 
nursing home care in a State home if--
    (1) The veteran:
    (i) Has a singular or combined rating of less than 50 percent based 
on one or more service-connected disabilities and needs the drugs and 
medicines for a service-connected disability; and
    (ii) Needs nursing home care for reasons that do not include care 
for a VA adjudicated service-connected disability; or
    (2) The veteran:
    (i) Has a singular or combined rating of 50 or 60 percent based on 
one or more service-connected disabilities and needs the drugs and 
medicines; and
    (ii) Needs nursing home care for reasons that do not include care 
for a VA adjudicated service-connected disability.
    (b) VA will also furnish drugs and medicines to a State home for a 
veteran receiving nursing home, domiciliary, or adult day health care 
in a State home pursuant to 38 U.S.C. 1712(d), as implemented by Sec.  
17.96 of this chapter, subject to the limitation in Sec.  51.41(c)(2).
    (c) VA may furnish a drug or medicine under paragraph (a) of this 
section and under Sec.  17.96 of this chapter only if the drug or 
medicine is included on VA's National Formulary, unless VA determines a 
non-Formulary drug or medicine is medically necessary.
    (d) VA may furnish a drug or medicine under this section and under 
Sec.  17.96 of this chapter by having the drug or medicine delivered to 
the State home in which the veteran resides by mail or other means and 
packaged in a form that is mutually acceptable to the State home and to 
VA set forth in a written agreement.
    (e) As a condition for receiving drugs or medicine under this 
section or under Sec.  17.96 of this chapter, the State must submit to 
the VA medical center of jurisdiction a completed VA Form 10-0460 with 
the corresponding prescription(s) for each eligible veteran.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)

0
12. Revise Sec.  51.50 to read as follows:


Sec.  51.50   Eligible veterans--nursing home care.

    A veteran is an eligible veteran for the purposes of payment of per 
diem for nursing home care under this part if VA determines that the 
veteran needs nursing home care; is not barred from receiving care 
based on his or her service (see 38 U.S.C. 5303, 5303A), is not barred 
from receiving VA pension, compensation or dependency and indemnity 
compensation based on the character of a discharge from military 
service (see 38 CFR 3.12) and is within one of the following 
categories:
    (a) Veterans with service-connected disabilities;
    (b) Veterans who are former prisoners of war, who were awarded the 
Purple Heart, or who were awarded the medal of honor under 10 U.S.C. 
3741, 6241, or 8741 or 14 U.S.C. 491;
    (c) Veterans who were discharged or released from active military 
service for a disability incurred or aggravated in the line of duty;
    (d) Veterans who receive disability compensation under 38 U.S.C. 
1151;
    (e) Veterans whose entitlement to disability compensation is 
suspended because of the receipt of retired pay;
    (f) Veterans whose entitlement to disability compensation is 
suspended pursuant to 38 U.S.C. 1151, but only to the extent that such 
veterans' continuing eligibility for nursing home care is provided for 
in the judgment or settlement described in 38 U.S.C. 1151;
    (g) Veterans who VA determines are unable to defray the expenses of 
necessary care as specified under 38 U.S.C. 1722(a);
    (h) Veterans solely seeking care for a disorder associated with 
exposure to a toxic substance or radiation, for a disorder associated 
with service in the Southwest Asia theater of operations during the 
Persian Gulf War, as provided in 38 U.S.C. 1710(e), or for any illness 
associated with service in combat in a war after the Gulf War or during 
a period of hostility after November 11, 1998, as provided and limited 
in 38 U.S.C. 1710(e);
    (i) Veterans who agree to pay to the United States the applicable 
co-payment determined under 38 U.S.C. 1710(f) and 1710(g).

    Note 1 to paragraph (i): Neither enrollment in the VA healthcare 
system nor eligibility to enroll is required to be an eligible 
veteran for the purposes of payment of per diem for nursing home 
care.


0
13. Add Sec.  51.51 to read as follows:


Sec.  51.51  Eligible veterans--domiciliary care.

    (a) A veteran is an eligible veteran for the purposes of payment of 
per diem for domiciliary care in a State home under this part if VA 
determines that the veteran is not barred from receiving care based on 
his or her service (see 38 U.S.C. 5303, 5303A), is not barred from 
receiving VA pension, compensation or dependency and indemnity 
compensation based on the character of a discharge from military 
service (see 38 CFR 3.12), and the veteran is:
    (1) A veteran whose annual income does not exceed the maximum 
annual rate of pension payable to a veteran in need of regular aid and 
attendance; or
    (2) A veteran who VA determines has no adequate means of support. 
The phrase ``no adequate means of support'' refers to an applicant for 
domiciliary care whose annual income exceeds the rate of pension 
described in paragraph (a)(1) of this section, but who is able to 
demonstrate to competent VA medical authority, on the basis of 
objective evidence, that deficits in health or functional status render 
the applicant incapable of pursuing substantially gainful employment, 
as determined by the Chief of Staff of the VA medical center of 
jurisdiction, and who is otherwise without the means to provide 
adequately for himself or herself, or be provided for in the community.
    (b) For purposes of this section, the eligible veteran must be able 
to perform the following:
    (1) Daily ablutions, such as brushing teeth, bathing, combing hair, 
and body eliminations, without assistance.
    (2) Dress himself or herself with a minimum of assistance.
    (3) Proceed to and return from the dining hall without aid.
    (4) Feed himself or herself.
    (5) Secure medical attention on an ambulatory basis or by use of a 
personally propelled wheelchair.
    (6) Have voluntary control over body eliminations or have control 
by use of an appropriate prosthesis.
    (7) Participate in some measure, however slight, in work 
assignments that support the maintenance and operation of the State 
home.
    (8) Make rational and competent decisions as to his or her desire 
to remain in or leave the State home.

0
14. Add Sec.  51.52 to read as follows:


Sec.  51.52  Eligible veterans--adult day health care.

    A veteran is an eligible veteran for payment of per diem to a State 
for adult day health care if VA determines that the veteran:
    (a) Is not barred from receiving VA pension, compensation or 
dependency and indemnity compensation based on the character of a 
discharge from military service (see 38 CFR 3.12);
    (b) Is enrolled in the VA health care system;
    (c) Would otherwise require nursing home care; and
    (d) Needs adult day health care because the veteran meets any one 
of the following conditions:

[[Page 61276]]

    (1) The veteran has three or more Activities of Daily Living (ADL) 
dependencies.
    (2) The veteran has significant cognitive impairment.
    (3) The veteran has two ADL dependencies and two or more of the 
following conditions:
    (i) Seventy-five years old or older;
    (ii) High use of medical services, i.e., three or more 
hospitalizations per calendar year, or 12 or more visits to an 
outpatient clinic or to an emergency evaluation unit per calendar year;
    (iii) Diagnosis of clinical depression; or
    (iv) Living alone in the community.
    (4) The veteran does not meet the criteria in paragraph (d)(1), 
(2), or (3) of this section, but nevertheless a licensed VA medical 
practitioner determines the veteran needs adult day health care 
services.

(Authority: 38 U.S.C. 501, 1720(f), 1741-1743)

0
15. Add Sec.  51.58 to read as follows:


Sec.  51.58  Requirements and Standards applicable for payment of per 
diem.

    A State home must meet the requirements in subpart C and the 
standards in the applicable subpart to be recognized, certified, and 
receive per diem for that program of care:
    (a) For nursing home care, subpart D.
    (b) For domiciliary care, subpart E.
    (c) For adult day health care, subpart F.

0
16. Revise Sec.  51.59 to read as follows:


Sec.  51.59  Authority to continue payment of per diem when veterans 
are relocated due to emergency.

    (a) Definition of emergency. For the purposes of this section, 
emergency means an occasion or instance where all of the following are 
true:
    (1) It would be unsafe for veterans receiving care at a State home 
to remain in that home.
    (2) The State is not, or believes that it will not be, able to 
provide care in the State home on a temporary or long-term basis for 
any or all of its veteran residents due to a situation involving the 
State home, and not due to a situation where a particular veteran's 
medical condition requires that the veteran be transferred to another 
facility, such as for a period of hospitalization.
    (3) The State determines that the veterans must be evacuated to 
another facility or facilities.
    (b) General authority to pay per diem during a relocation period. 
Notwithstanding any other provision of this part, VA will continue to 
pay per diem for a period not to exceed 30 calendar days for any 
eligible veteran who resided in a State home, and for whom VA was 
paying per diem, if such veteran is evacuated during an emergency into 
a facility other than a VA nursing home, hospital, domiciliary, or 
other VA site of care if the State is responsible for providing or 
paying for the care. VA will not pay per diem under this section for 
more than 30 calendar days of care provided in the evacuation facility, 
unless the official who approved the emergency response under paragraph 
(e) of this section determines that it is not reasonably possible to 
return the veteran to a State home within the 30-calendar-day period, 
in which case such official will approve additional period(s) of no 
more than 30 calendar days in accordance with this section. VA will not 
pay per diem if VA determines that a veteran is or has been placed in a 
facility that does not meet the standards set forth in paragraph (c)(1) 
of this section, and VA may recover all per diem paid for the care of 
the veteran in that facility.
    (c) Selection of evacuation facilities. The following standards and 
procedures in paragraphs (c)(1) through (3) apply to the selection of 
an evacuation facility in order for VA to continue to pay per diem 
during an emergency. These standards and procedures also apply to 
evacuation facilities when veterans are evacuated from a nursing home 
in which care is being provided pursuant to a contract under 38 U.S.C. 
1720.
    (1) Each veteran who is evacuated must be placed in a facility 
that, at a minimum, will meet the needs for food, shelter, toileting, 
and essential medical care of that veteran.
    (2) For veterans evacuated from nursing homes, the following types 
of facilities may meet the standards under paragraph (c)(1) of this 
section:
    (i) VA Community Living Centers;
    (ii) VA contract nursing homes;
    (iii) Centers for Medicare and Medicaid Services certified 
facilities; and
    (iv) Licensed nursing homes.

    Note 1 to paragraph (c)(2): If none of the above options are 
available, veterans may be evacuated temporarily to other facilities 
that meet the standards under paragraph (c)(1) of this section.

    (3) For veterans evacuated from domiciliaries, the following types 
of facilities may meet the standards in paragraph (c)(1) of this 
section:
    (i) Emergency evacuation facilities identified by the city or 
State;
    (ii) Assisted living facilities; and
    (iii) Hotels.
    (d) Applicability to adult day health care programs of care. 
Notwithstanding any other provision of this part, VA will continue to 
pay per diem for a period not to exceed 30 calendar days for any 
eligible veteran who was receiving adult day health care, and for whom 
VA was paying per diem, if the adult day health care facility becomes 
temporarily unavailable due to an emergency. Approval of a temporary 
program of care for such veteran is subject to paragraph (e) of this 
section. If after 30 calendar days the veteran cannot return to the 
adult day health care program in the State home, VA will discontinue 
per diem payments unless the official who approved the emergency 
response under paragraph (e) of this section determines that it is not 
reasonably possible to provide care in the State home or to relocate an 
eligible veteran to a different recognized or certified facility, in 
which case such official will approve additional period(s) of no more 
than 30 calendar days at the temporary program of care in accordance 
with this section. VA will not pay per diem if VA determines that a 
veteran was provided adult day health care in a facility that does not 
meet the standards set forth in paragraph (c)(1) of this section, and 
VA may recover all per diem paid for the care of the veteran in that 
facility.
    (e) Approval of response. Per diem payments will not be made under 
this section unless and until the Director of the VA medical center of 
jurisdiction or the director of the VISN in which the State home is 
located (if the VAMC Director is not capable of doing so) determines, 
that an emergency exists and that the evacuation facility meets VA 
standards set forth in paragraph (c)(1) of this section.

0
17. Revise the heading of subpart D to read as follows:

Subpart D--Standards applicable to the payment of per diem for 
nursing home care.

* * * * *


Sec.  51.120  [Amended]

0
18. Amend Sec.  51.120 in paragraph (a)(3) by removing ``Chief 
Consultant, Office of Geriatrics and Extended Care (114)'' and adding 
in its place ``Office of Geriatrics and Extended Care in VA Central 
Office''.


Sec.  51.140  [Amended]

0
19. Amend Sec.  51.140:
0
a. In paragraph (a)(2), by removing ``American Dietetic Association'' 
and adding in its place ``Academy of Nutrition and Dietetics''; and
0
b. In paragraph (d)(4), by removing ``who refuse food served''.

0
20. Amend Sec.  51.210:

[[Page 61277]]

0
a. In paragraph (b) introductory text, by removing ``Chief Consultant, 
Office of Geriatrics and Extended Care (114)'' and adding in its place 
``Office of Geriatrics and Extended Care''; and
0
b. Revising paragraph (b)(2), redesignating paragraph (b)(3) as (b)(4) 
and revising it, and adding new paragraph (b)(3) and paragraph (h)(3).
    The revision and additions read as follows:


Sec.  51.210  Administration.

* * * * *
    (b) * * *
    (2) The State home administrator;
    (3) The director of nursing services (or other individual in charge 
of nursing services); and
    (4) The State employee responsible for oversight of the State home 
if a contractor operates the State home.
* * * * *
    (h) * * *
    (3) If a veteran requires health care that the State home is not 
required to provide under this part, the State home may assist the 
veteran in obtaining that care from sources outside the State home, 
including the Veterans Health Administration. If VA is contacted about 
providing such care, VA will determine the best option for obtaining 
the needed services and will notify the veteran or the authorized 
representative of the veteran.
* * * * *

0
21. Add subpart E, consisting of Sec. Sec.  51.300 through 51.390, to 
read as follows:
Subpart E--Standards Applicable to the Payment of Per Diem for 
Domiciliary Care
Sec.
51.300 Resident rights and behavior; State home practices; quality 
of life.
51.310 Resident admission, assessment, care plan, and discharge.
51.320 Quality of care.
51.330 Nursing care.
51.340 Physician and other licensed medical practitioner services.
51.350 Provision of certain specialized services and environmental 
requirements.
51.390 Administration.

Subpart E--Standards Applicable to the Payment of Per Diem for 
Domiciliary Care


Sec.  51.300  Resident rights and behavior; State home practices; 
quality of life.

    The State home must protect and promote the rights and quality of 
life of each resident receiving domiciliary care, and otherwise comply 
with the requirements in Sec.  51.70, except Sec.  51.70(b)(9), (h)(1), 
and (m); Sec.  51.80, except Sec.  51.80(a)(2) and (4) and (b); Sec.  
51.90; and Sec.  51.100, except Sec.  51.100(g)(2), (h), and (i)(5) 
through (7). The State Home must have a written procedure for 
admissions, discharges, and transfers. For purposes of this section, 
the terms ``nursing home'' and ``nursing facility'' or ``facility'' in 
the applicable provisions of the cited sections apply to a domiciliary.
    (a) Notice of rights and services--notification of changes. (1) 
Facility management must immediately inform the resident and consult 
with the primary care physician when there is
    (i) An accident involving the resident that results in injury and 
has the potential for requiring physician intervention;
    (ii) A significant change in the resident's physical, mental, or 
psychosocial status (i.e., a deterioration in health, mental, or 
psychosocial status in either life-threatening conditions or clinical 
complications);
    (iii) A need to alter treatment significantly (i.e., a need to 
discontinue an existing form of treatment due to adverse consequences, 
or to commence a new form of treatment); or
    (iv) A decision to transfer or discharge the resident from the 
facility as specified in paragraph (d) of this section.
    (2) The facility management must also promptly notify the resident 
when there is
    (i) A change in room or roommate assignment as specified in Sec.  
51.100(f)(2); or
    (ii) A change in resident rights under Federal or State law or 
regulations as specified in Sec.  51.70(b)(1).
    (3) The facility management must record and periodically update the 
address and phone number of the resident's legal representative or 
interested family member, but the resident has the right to decide 
whether to have the State home notify his or her legal representative 
or interested family member of changes.
    (b) Work. The resident must participate, based on his or her 
ability, in some measure, however slight, in work assignments that 
support the maintenance and operation of the State home. The State Home 
management must create a written policy to implement the work 
requirement. The resident is encouraged to participate in vocational 
and employment services, which are essential to meeting the 
psychosocial needs of the resident. The resident must perform work for 
the facility after the State home has accomplished the following:
    (1) The facility has documented the resident's need or desire to 
work in the comprehensive care plan;
    (2) The comprehensive care plan described in Sec.  51.310 specifies 
the nature of the work performed and whether the work is unpaid or 
paid;
    (3) Compensation for work for which the facility would pay a 
prevailing wage if done by non-residents is paid at or above prevailing 
wages for similar work in the area where the facility is located; and
    (4) The facility consulted with and the resident agrees to the work 
arrangement described in the comprehensive care plan.
    (c) Married couples. The resident has the right, if space is 
available within the existing facility, to share a room with his or her 
spouse when married residents live in the same facility and both 
spouses consent to the arrangement. If the State home determines 
existing space is not available to allow married residents to share 
rooms, the State home will make accommodations for the privacy of 
married residents.
    (d) Transfer and discharge--(1) Definition: Transfer and discharge 
includes movement of a resident to a bed outside of the facility 
whether that bed is in the same physical plant or not. Transfer and 
discharge does not refer to movement of a resident to a bed within the 
same facility.
    (2) Transfer and discharge requirements. The facility management 
must permit each resident to remain in the facility, and not transfer 
or discharge the resident from the facility unless
    (i) The transfer or discharge is necessary for the resident's 
welfare, including because the domiciliary resident's health has 
improved sufficiently so the resident no longer needs the services 
provided by the domiciliary;
    (ii) The resident is in need of a higher level of long term or 
acute care;
    (iii) The safety of individuals in the facility is endangered;
    (iv) The health of individuals in the facility would otherwise be 
endangered;
    (v) The resident has failed, after reasonable and appropriate 
notice, to pay for a stay at the facility;
    (vi) The domiciliary ceases to operate; or
    (vii) The resident ceases to meet any of the eligibility criteria 
of Sec.  51.51.
    (3) Documentation. When the facility transfers or discharges a 
resident under any of the circumstances specified in paragraphs 
(a)(2)(i) through (vii) of this section, the primary care physician 
must document the transfer and circumstances in the resident's clinical 
record.

[[Page 61278]]

    (4) Notice before transfer. Before a facility transfers or 
discharges a resident, the facility must
    (i) Notify the resident of the transfer or discharge and the 
reasons for the move in writing and in a language and manner he or she 
understands. The resident has the right to decide whether to have the 
State home notify his or her legal representative or interested family 
member of changes.
    (ii) Record the reasons in the resident's clinical record; and
    (iii) Include in the notice the items described in paragraph (d)(6) 
of this section.
    (5) Timing of the notice. (i) The notice of transfer or discharge 
required by paragraph (d)(4) of this section must be made by the 
facility at least 30 calendar days before the resident is transferred 
or discharged, except when specified in paragraph (d)(5)(ii) of this 
section,
    (ii) Notice may be made as soon as practicable before transfer or 
discharge when
    (A) The safety of individuals in the facility would be endangered;
    (B) The health of individuals in the facility would be otherwise 
endangered;
    (C) The resident's health improves sufficiently so the resident no 
longer needs the services provided by the domiciliary; or
    (D) The resident's needs cannot be met in the domiciliary.
    (6) Contents of the notice. The written notice specified in 
paragraph (d)(4) of this section must include the following:
    (i) The reason for transfer or discharge;
    (ii) The effective date of transfer or discharge;
    (iii) The location to which the resident is transferred or 
discharged;
    (iv) A statement that the resident has the right to appeal the 
action to the State official designated by the State; and
    (v) The name, address and telephone number of the State long term 
care ombudsman.
    (7) Orientation for transfer or discharge. The facility management 
must provide sufficient preparation and orientation to residents to 
ensure safe and orderly transfer or discharge from the facility.
    (e) Notice of bed-hold policy and readmission--notice before 
transfer. The State home must have a written bed-hold policy, including 
criteria for return to the facility. The facility management must 
provide written information to the resident about the State home bed-
hold policy upon enrollment, annually thereafter, and before a State 
home transfers a resident to a hospital. A Resident has the right to 
decide whether to have the State home notify his or her legal 
representative or interested family member of transfers.
    (f) Resident activities. (1) The facility management must provide 
for an ongoing program of activities designed to meet, in accordance 
with the comprehensive assessment, the interests and the physical, 
mental, and psychosocial well-being of each resident.
    (2) The activities program must be directed by a qualified 
coordinator.
    (g) Social services. (1) The State home must provide social work 
services to meet the social and emotional needs of residents to attain 
or maintain the highest practicable mental and psychosocial well-being 
of each resident.
    (2) The State home must have a sufficient number of social workers 
to meet residents' needs.
    (3) The State home must have a written policy on how it determines 
qualifications of social workers. It is highly recommended, but not 
required, that a qualified social worker is an individual with
    (i) A bachelor's degree in social work from a school accredited by 
the Council of Social Work Education (Note: A master's degree social 
worker with experience in long-term care is preferred), and
    (ii) A social work license from the State in which the State home 
is located, if offered by the State, and
    (iii) A minimum of one year of supervised social work experience in 
a health care setting working directly with individuals.
    (4) The facility management must have sufficient support staff to 
meet patients' social services needs.
    (5) Facilities for social services must ensure privacy for 
interviews.
    (h) Environment. The facility management must provide
    (1) A safe, clean, comfortable, and homelike environment, allowing 
the resident to use his or her personal belongings to the extent 
possible;
    (2) Housekeeping and maintenance services necessary to maintain a 
sanitary, orderly, and comfortable interior;
    (3) Clean bed and bath linens that are in good condition; and
    (4) Private closet space in each resident's room, as specified in 
Sec.  51.200(d)(2)(iv).

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.310  Resident admission, assessment, care plan, and discharge.

    The State home must conduct accurate, written, medical and 
comprehensive assessments of each resident's medical and functional 
capacity upon admission, annually, and as required by a change in the 
resident's condition. The comprehensive assessment will use information 
from the medical assessment, and both assessments will inform the 
comprehensive care plan. The State home must have a written policy to 
determine how to coordinate and complete the comprehensive assessment 
process, including how it will review, and revise the comprehensive 
assessment in implementing the comprehensive care plan. The State home 
must review comprehensive assessments annually, and promptly after 
every significant change in the resident's physical, mental, or social 
condition.
    (a) Admission orders and medical assessment. At the time each 
resident is admitted, the State home must have physician orders for the 
resident's immediate care. A medical assessment, including a medical 
history and physical examination, must be performed by a physician, or 
other health care provider qualified under State law, and recorded in 
the medical record no later than 7 calendar days after admission, 
unless one was performed no earlier than 5 calendar days before 
admission and the findings were recorded in the medical record. The 
medical assessment will be part of the comprehensive assessment.
    (b) Comprehensive assessments. (1) The state home must complete a 
comprehensive assessment of each resident no later than 14 calendar 
days after admission, annually, and as required by a change in the 
resident's condition.
    (2) Each comprehensive assessment must be conducted or coordinated 
by a registered nurse with the participation of appropriate healthcare 
professionals, including at least one physician, the registered nurse, 
and one social worker. The registered nurse must sign and certify the 
assessment. The comprehensive assessment is to determine the care, 
treatment, and services that will meet the resident's initial and 
continuing needs. It is an objective evaluation of a resident's health 
and functional status, describing the resident's capabilities and 
impairments in performing activities of daily living, strengths, and 
needs. The assessment gathers information through collection of data, 
observation, and examination.

[[Page 61279]]

    (c) Comprehensive care plans. (1) The State home must develop a 
comprehensive care plan for each resident based on the comprehensive 
assessment, and develop, review, and revise the comprehensive care plan 
following each comprehensive assessment. The comprehensive care plan 
must include measurable objectives and timetables to address a 
resident's emotional, behavioral, social, and physical needs, with 
emphasis on assisting each patient to achieve and maintain an optimal 
level of self-care and independence. The comprehensive care plan must 
describe the following, as appropriate to the resident's circumstances:
    (i) The services that are to be furnished to support the resident's 
highest practicable emotional, behavioral, social rehabilitation, and 
physical well-being;
    (ii) The specific work the resident agrees to do to share in the 
maintenance and operation of the State home upon consultation with the 
interdisciplinary team, and whether that work is paid or unpaid; and
    (iii) Any services that would otherwise be required under Sec.  
51.350 but are not provided due to the resident's exercise of rights 
under Sec.  51.70, including the right in Sec.  51.70(b)(4) to refuse 
treatment.
    (2) A comprehensive care plan must be:
    (i) Developed no later than 21 calendar days after admission; and
    (ii) Prepared by an interdisciplinary team of health professionals 
that may include the primary care physician or a Licensed Independent 
Practitioner (or designated Physician's Assistant or Nurse 
Practitioner), a social worker, and a registered nurse who have 
responsibility for the resident, and other staff in appropriate 
disciplines as determined by the resident's needs, and, to the extent 
practicable, the participation of the resident and the resident's 
family (subject to the consent of the resident) or the resident's legal 
representative, if appropriate;
    (iii) Reviewed periodically and revised consistent with the most 
recent comprehensive assessment by a team of qualified persons no less 
often than semi-annually; and
    (iv) Revised promptly after a comprehensive assessment reveals a 
significant change in the resident's condition.
    (3) The services provided by the facility must
    (i) Meet professional standards of quality; and
    (ii) Be provided by qualified persons in accordance with each 
resident's written comprehensive care plan.
    (d) Discharge summary. (1) Prior to discharging a resident, the 
State home must prepare a discharge summary that includes
    (i) A summary of the resident's stay, the resident's status at the 
time of the discharge, and the resident's progress on the comprehensive 
care plan in paragraph (b)(2) of this section; and
    (ii) A post-discharge comprehensive care plan that is developed 
with the participation of the resident.
    (2) A resident has the right to decide if he or she would like to 
involve his or her legal representative or interested family member in 
development of a post-discharge plan.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.320  Quality of care.

    The State home must provide each resident with the care described 
in this subpart in accordance with the assessment and comprehensive 
care plan.
    (a) Reporting of sentinel events. (1) A sentinel event is an 
adverse event that results in the loss of life or limb or permanent 
loss of function.
    (2) Examples of sentinel events are as follows:
    (i) Any resident death, paralysis, coma or other major permanent 
loss of function associated with a medication error;
    (ii) Any suicide of a resident;
    (iii) Assault, homicide or other crime resulting in resident death 
or major permanent loss of function; or
    (iv) A resident fall that results in death or major permanent loss 
of function as a direct result of the injuries sustained in the fall.
    (3) The State home must report sentinel events to the Director no 
later than 24 hours after identification. The VA medical center of 
jurisdiction must report sentinel events by notifying the VA Network 
Director (10N1-10N22) and the Director, Office of Geriatrics and 
Extended Care--Operations (10NC4) no later than 24 hours after 
notification.
    (4) The State home must establish a mechanism to review and analyze 
a sentinel event resulting in a written report to be submitted to the 
VA Medical Center of jurisdiction no later than 10 working days 
following the event. The purpose of the review and analysis of a 
sentinel event is to prevent injuries to residents, visitors, and 
personnel, and to manage those injuries that do occur and to minimize 
the negative consequences to the injured individuals and the State 
home.
    (b) Activities of daily living. Based on the comprehensive 
assessment of a resident, the State home must ensure that a resident's 
abilities in activities of daily living do not diminish unless 
circumstances of the individual's clinical condition demonstrate that 
diminution was unavoidable, and the resident is given appropriate 
treatment and services to maintain or improve his activities of daily 
living. This includes the resident's ability to:
    (1) Bathe, dress, and groom;
    (2) Transfer and ambulate;
    (3) Toilet;
    (4) Eat; and
    (5) Talk or otherwise communicate.
    (c) Vision and hearing. To ensure that residents receive proper 
treatment and assistive devices to maintain vision and hearing, the 
State home must, if necessary, assist the resident:
    (1) In making appointments; and
    (2) By arranging for transportation to and from the office of a 
practitioner specializing in the treatment of vision or hearing 
impairment or the office of a professional specializing in the 
provision of vision or hearing assistive devices.
    (d) Mental and psychosocial functioning. Based on the comprehensive 
assessment of a resident, the State home must assist a resident who 
displays mental or psychosocial adjustment difficulty obtain 
appropriate treatment and services to correct the assessed problem.
    (e) Accidents. The State home must ensure that:
    (1) The resident environment remains as free of accident hazards as 
possible; and
    (2) Each resident receives adequate supervision and assistive 
devices to prevent accidents.
    (f) Nutrition. The State home must follow Sec.  51.120(j) regarding 
nutrition in providing domiciliary care.
    (g) Special needs. The State home must provide residents with the 
following services, if needed:
    (1) Injections;
    (2) Colostomy, ureterostomy, or ileostomy care;
    (3) Respiratory care;
    (4) Foot care; and
    (5) Non-customized or non-individualized prosthetic devices.
    (h) Unnecessary drugs. The State home must ensure that the 
standards set forth in Sec.  51.120(m) regarding unnecessary drugs are 
followed in providing domiciliary care.
    (i) Medication errors. The State home must ensure that the 
standards set forth in Sec.  51.120(n) regarding medication

[[Page 61280]]

errors are followed in providing domiciliary care.

    (The Office of Management and Budget has approved the 
information collection requirements in this section under control 
number 2900-0160.)


Sec.  51.330   Nursing care.

    The State home must provide an organized nursing service with a 
sufficient number of qualified nursing personnel to meet the total 
nursing care needs of all residents within the facility, 24 hours a 
day, 7 days a week, as determined by their comprehensive assessments 
and their comprehensive care plans. The nursing service must be under 
the direction of a full-time registered nurse who is currently licensed 
by the State and has, in writing, administrative authority, 
responsibility, and accountability for the functions, activities, and 
training of the nursing service's staff.


Sec.  51.340   Physician and other licensed medical practitioner 
services.

    The State home must provide its residents the primary care 
necessary to enable them to attain or maintain the highest practicable 
physical, mental, and psychosocial well-being. When a resident needs 
care other than the State home is required to provide under this 
subpart, the State home is responsible to assist the resident to obtain 
that care. The State home must ensure that a physician personally 
approves in writing a recommendation that an individual be admitted to 
a domiciliary. Each resident must remain at all times under the care of 
a licensed medical practitioner assigned by the State home. The name of 
the practitioner will be listed in the resident's medical record. The 
State home must ensure that all of the following conditions in 
paragraphs (a) through (e) of this section are met:
    (a) Supervision of medical practitioners. Any licensed medical 
practitioner who is not a physician may provide medical care to a 
resident within the practitioner's scope of practice without physician 
supervision when permitted by State law.
    (b) Availability of medical practitioners. If the resident's 
assigned licensed medical practitioner is unavailable, another licensed 
medical practitioner must be available to provide care for that 
resident.
    (c) Visits. The primary care physician or other licensed medical 
practitioner, for each visit required by paragraph (d) of this section, 
must
    (1) Review the resident's total program of care, including 
medications and treatments;
    (2) Write, sign, and date progress notes; and
    (3) Sign and date all orders.
    (d) Frequency of visits. The primary care physician or other 
licensed medical practitioner must conduct an in-person medical 
assessment of the resident at least once a calendar year, or more 
frequently based on the resident's condition.
    (e) Availability of emergency care. The State home must assist 
residents in obtaining emergency care.


Sec.  51.350  Provision of certain specialized services and 
environmental requirements.

    The State home domiciliary care programs must comply with the 
requirements of Sec.  51.140, except Sec.  51.140(f)(2) through (4) 
concerning dietary services; Sec.  51.170 concerning dental services; 
Sec.  51.180, except Sec.  51.180(c) concerning pharmacy services; 
Sec.  51.190 concerning infection control; and Sec.  51.200, except 
Sec.  51.200(a), (b), (d)(1)(ii) through (x), (f), and (h)(3) 
concerning the physical environment. For purposes of this section, the 
references to ``facility'' in the cited sections also refer to a 
domiciliary.
    (a) Dietary services. (1) There must be no more than 14 hours 
between a substantial evening meal and the availability of breakfast 
the following day, except as provided in (a)(3) of this section.
    (2) The facility staff must offer snacks at bedtime daily.
    (3) Sixteen hours may elapse between a substantial evening meal and 
breakfast the following day when a nourishing snack is offered at 
bedtime.
    (b) Pharmacy services. (1) The drug regimen of each resident must 
be reviewed at least once every six months by a licensed pharmacist.
    (2) The pharmacist must report any irregularities to the primary 
care physician and the director of nursing, and these reports must be 
acted upon.
    (c) Life safety from fire. The facility must meet the applicable 
requirements of the National Fire Protection Association's NFPA 101, 
Life Safety Code, as incorporated by reference in Sec.  51.200.
    (d) Privacy. The facility must provide the means for visual privacy 
for each resident.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.390  Administration.

    The State home must follow Sec.  51.210 regarding administration in 
providing domiciliary care. For purposes of this section, the 
references in the cited section to nursing home and nursing home care 
refer to a domiciliary and domiciliary care.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


0
 22. Add subpart F, consisting of Sec. Sec.  51.400 through 51.480, to 
read as follows:
Subpart F--Standards Applicable to the Payment of per Diem for Adult 
Day Health Care
Sec.
51.400 Participant rights.
51.405 Participant and family caregiver responsibilities.
51.410 Transfer and discharge.
51.411 Program practices.
51.415 Restraints, abuse, and staff treatment of participants.
51.420 Quality of life.
51.425 Physician orders and participant medical assessment.
51.430 Quality of care.
51.435 Nursing services.
51.440 Dietary services.
51.445 Physician services.
51.450 Specialized rehabilitative services.
51.455 Dental services.
51.460 Administration of drugs.
51.465 Infection control.
51.470 Physical environment.
51.475 Administration.
51.480 Transportation.

Subpart F--Standards Applicable to the Payment of per Diem for 
Adult Day Health Care


Sec.  51.400  Participant rights.

    The State home must protect and promote the rights of a participant 
in an adult day health care program, including the rights set forth in 
Sec.  51.70, except for the right set forth in Sec.  51.70(m). For 
purposes of this section, the references to resident in the cited 
section also refer to a participant in this section.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.405  Participant and family caregiver responsibilities.

    The State home must post a written statement of participant and 
family caregiver responsibilities in a place where participants in the 
adult day health care program and their families will see it and must 
provide a copy to the participant and caregiver at or before the time 
of the intake screening. The statement of responsibilities must include 
the following:
    (a) Treat personnel with respect and courtesy;
    (b) Communicate with staff to develop a relationship of trust;

[[Page 61281]]

    (c) Make appropriate choices and seek appropriate care;
    (d) Ask questions and confirm your understanding of instructions;
    (e) Share opinions, concerns, and complaints with the program 
director;
    (f) Communicate any changes in the participant's condition;
    (g) Communicate to the program director about medications and 
remedies used by the participant;
    (h) Let the program director know if the participant decides not to 
follow any instructions or treatment; and
    (i) Communicate with the adult day health care staff if the 
participant is unable to attend adult day health care.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.410  Transfer and discharge.

    (a) Definition. For purposes of this section, the term ``transfer 
or discharge'' includes movement of a participant to a program outside 
of the adult day health care program whether or not the program of care 
is in the same facility.
    (b) Transfer and discharge requirements. At the time of intake 
screening, the State home must discuss the possible reasons for 
transfer or discharge with the participant and, to the extent 
practicable and appropriate, with family members (subject to the 
consent of the participant) or the participant's legal representatives. 
In the case of a transfer and discharge to a hospital, the transfer and 
discharge must be to the hospital closest to the adult day health care 
facility that can provide the necessary care. The State home must 
permit each participant to remain in the program of care, and not 
transfer or discharge the participant from the program of care unless:
    (1) The transfer and discharge is necessary for the participant's 
welfare and the participant's needs cannot be met in the adult day 
health care setting;
    (2) The transfer and discharge is appropriate because the 
participant's health has improved sufficiently so that the participant 
no longer needs the services provided in the adult day health care 
program;
    (3) The safety of individuals in the facility is endangered;
    (4) The health of individuals in the facility would otherwise be 
endangered;
    (5) The participant has failed, after reasonable and appropriate 
notice, to pay for participation in the adult day health care program; 
or
    (6) The adult day health care program ceases to operate.
    (c) Notice before transfer or discharge. Before an adult day health 
care program undertakes the transfer or discharge of a participant, the 
State home must:
    (1) Notify the resident of the transfer or discharge and the 
reasons for the move in writing and in a language and manner he or she 
understands. The resident has the right to decide whether to have the 
State home notify his or her legal representative or interested family 
member of changes;
    (2) Record the reasons in the participant's clinical record; and
    (3) Include in the notice the items described in paragraph (e) of 
this section.
    (d) Timing of the notice. (1) The notice of transfer or discharge 
required under paragraph (c) of this section must be made by the State 
home at least 30 calendar days before the participant is given a 
transfer or discharge, except when specified in paragraph (d)(2) of 
this section.
    (2) Notice may be made as soon as practicable before a transfer or 
discharge when
    (i) The safety of individuals in the facility would be endangered;
    (ii) The health of individuals in the facility would be otherwise 
endangered;
    (iii) The participant's health improves sufficiently that the 
participant no longer needs the services provided by the adult day 
health care program of care; or
    (iv) The participant's needs cannot be met in the adult day health 
care program of care.
    (e) Contents of the notice. The written notice specified in 
paragraph (c) of this section must include the following:
    (1) The reason for the transfer or discharge;
    (2) The effective date of the transfer or discharge;
    (3) The location to which the participant is taken in accordance 
with the transfer or discharge, if any;
    (4) A statement that the participant has the right to appeal the 
action to the State official responsible for the oversight of State 
home programs; and
    (5) The name, address and telephone number of the first listed of 
the following that exists in the State:
    (i) The State long-term care ombudsman, if the long-term care 
ombudsman serves adult day health care facilities; or
    (ii) Any State ombudsman or advocate who serves adult day health 
care participants; or
    (iii) The State agency responsible for oversight of State adult day 
care facilities.
    (f) Orientation for transfer and discharge. The State home must 
provide sufficient preparation and orientation to participants to 
ensure safe and orderly transfer or discharge from the State home.
    (g) Written policy. The State home must have in effect written 
transfer and discharge procedures that reasonably ensure that:
    (1) Participants will be given a transfer or discharge from the 
adult day health care program to the hospital when transfer or 
discharge is medically appropriate as determined by a physician; and
    (2) Medical and other information needed for care and treatment of 
participants will be exchanged between the facility and the hospital.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.411  Program practices.

    (a) Equal access to quality care. The State home must establish and 
maintain identical policies and practices regarding transfer and 
discharge under Sec.  51.410 and the provision of services for all 
participants regardless of the source of payment.
    (b) Admission policy. The State home must not require a third-party 
guarantee of payment as a condition of admission or expedited 
admission, or continued admission in the program of care. However, the 
State home may require a participant or an individual who has legal 
access to a participant's income or resources to pay for the care from 
the participant's income or resources, when available.
    (c) Hours of operation. Each adult day health care program must 
provide at least 8 hours of operation 5 days a week. The hours of 
operation must be flexible and responsive to caregiver needs.


Sec.  51.415  Restraints, abuse, and staff treatment of participants.

    The State home must meet the requirements regarding the use of 
restraints, abuse, and other matters concerning staff treatment of 
participants set forth in Sec.  51.90. For purposes of this section, 
the references in the cited section to resident refer to a participant 
in this section.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.420  Quality of life.

    The State home must provide an environment that supports the 
quality of life of each participant by maximizing the participant's 
potential strengths and skills. (a) Dignity. The State home must 
promote care for participants in a manner and in an environment that

[[Page 61282]]

maintains or enhances each participant's dignity and respect in full 
recognition of his or her individuality.
    (b) Self-determination and participation. The State home must 
ensure that the participant has the right to:
    (1) Choose activities, schedules, and health care consistent with 
his or her interests, assessments, and plans of care;
    (2) Interact with members of the community both inside and outside 
the facility; and
    (3) Make choices about aspects of his or her life in the facility 
that are significant to the participant.
    (c) Participant and family concerns. The State home must document 
any concerns submitted to the management of the program by participants 
or their family members.
    (1) A participant's family has the right to meet with families of 
other participants in the program.
    (2) Staff or visitors may attend meetings of participant or family 
groups at the group's invitation.
    (3) The State home must respond to written requests that result 
from group meetings.
    (4) The State home must listen to the views of any participant or 
family group and act upon the concerns of participants and families 
regarding policy and operational decisions affecting participant care 
in the program.
    (d) Participation in other activities. The State home must ensure 
that a participant has the right to participate in social, religious, 
and community activities that do not interfere with the rights of other 
participants in the program.
    (e) Therapeutic participant activities. (1) The State home must 
provide for an ongoing program of activities designed to meet, in 
accordance with the comprehensive assessment, the interests and the 
physical, mental, and psychosocial well-being of each participant.
    (2) The activities program must be directed by a qualified 
professional who is a qualified therapeutic recreation specialist or an 
activities professional who:
    (i) Is licensed, if applicable, by the State in which practicing; 
and
    (ii) Is certified as a therapeutic recreation specialist or an 
activities professional by a recognized certifying body.
    (3) A critical role of adult day health care is to build 
relationships and create a culture that supports, involves, and 
validates the participant. Therapeutic activity refers to that 
supportive culture and is a significant aspect of the individualized 
comprehensive care plan. A participant's activity includes everything 
the individual experiences during the day, not just arranged events. As 
part of effective therapeutic activity, the adult day health care 
program must:
    (i) Provide direction and support for participants, including 
breaking down activities into small, discrete steps or behaviors, if 
needed by a participant;
    (ii) Have alternative programming available for any participant 
unable or unwilling to take part in group activity;
    (iii) Design activities that promote personal growth and enhance 
the self-image and/or improve or maintain the functioning level of 
participants to the extent possible;
    (iv) Provide opportunities for a variety of involvements (social, 
intellectual, cultural, economic, emotional, physical, and spiritual) 
at different levels, including community activities and events;
    (v) Emphasize participants' strengths and abilities rather than 
impairments, and contribute to participants' feelings of competence and 
accomplishment; and
    (vi) Provide opportunities to voluntarily perform services for 
community groups and organizations.
    (f) Social services. (1) The State home must provide medically-
related social services to participants and their families.
    (2) An adult day health care program must provide a qualified 
social worker to furnish social services.
    (3) A qualified social worker is an individual with:
    (i) A bachelor's degree in social work from a school accredited by 
the Council of Social Work Education (Note: A master's degree in social 
worker with experience in long-term care is preferred);
    (ii) A social work license from the State in which the State home 
is located, if that license is offered by the State; and
    (iii) A minimum of one year of supervised social work experience in 
a health care setting working directly with individuals.
    (4) The State home must have sufficient social workers and support 
staff to meet participant and family social service needs. The adult 
day health care program must:
    (i) Provide counseling to participants and to families/caregivers;
    (ii) Facilitate the participant's adaptation to the adult day 
health care program and active involvement in the comprehensive care 
plan, if appropriate;
    (iii) Arrange for services not provided by adult day health care, 
and work with these resources to coordinate services;
    (iv) Serve as an advocate for participants by asserting and 
safeguarding the human and civil rights of the participants;
    (v) Assess signs of mental illness or dementia and make appropriate 
referrals;
    (vi) Provide information and referral for persons not appropriate 
for adult day health care;
    (vii) Provide family conferences, and serve as liaison between 
participant, family/caregiver and program staff;
    (viii) Provide individual or group counseling and support to 
caregivers and participants;
    (ix) Conduct support groups or facilitate participant or family/
caregiver participation in support groups;
    (x) Assist program staff in adapting to changes in participants' 
behavior; and
    (xi) Provide or arrange for individual, group, or family 
psychotherapy for participants with significant psychosocial needs.
    (5) Space for social services must be adequate to ensure privacy 
for interviews.
    (g) Environment. The State home must provide:
    (1) A safe, clean, comfortable, and homelike environment, and 
support the participants' ability to function as independently as 
possible and to engage in program activities;
    (2) Housekeeping and maintenance services necessary to maintain a 
sanitary, orderly, and comfortable interior;
    (3) Private storage space for each participant sufficient for a 
change of clothes. Upon request of the participant, the State home must 
offer storage space that can be secured with a lock;
    (4) Interior signs to facilitate participants' ability to move 
about the facility independently and safely;
    (5) A clean bed or reclining chair available for acute illness;
    (6) A shower for participants;
    (7) Adequate and comfortable lighting levels in all areas;
    (8) Comfortable and safe temperature levels; and
    (9) Comfortable sound levels.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.425   Physician orders and participant medical assessment.

    The State home must have a written policy to determine how to 
coordinate and complete the written initial and comprehensive 
assessment processes upon admission, annually, and as required by a 
change in the participant's condition. The State home must also

[[Page 61283]]

outline in its policy how it will complete, implement, review, and 
revise the assessments.
    (a) Admission. At the time each participant is admitted, the State 
home must have physician orders for the participant's immediate care. 
An initial medical assessment including a medical history and physical 
examination with documentation of tuberculosis screening must be 
completed by a physician or other health care provider qualified under 
State law no earlier than 30 calendar days before admission and no 
later than 7 calendar days after admission. The findings must be 
recorded in the participant's medical record.
    (b) Comprehensive assessments. The State home must complete the 
comprehensive assessment no later than 14 calendar days after 
admission. The State home must develop a comprehensive care plan for 
each participant based on his or her comprehensive assessment. The 
State home must review comprehensive assessments annually, as well as 
promptly after every significant change in the participant's physical, 
mental, or social condition. The State home must immediately change the 
participant's comprehensive care plan after a significant change is 
identified. At minimum, the written comprehensive assessment must 
address the following:
    (1) Ability to ambulate,
    (2) Ability to use bathroom facilities,
    (3) Ability to eat and swallow,
    (4) Ability to hear,
    (5) Ability to see,
    (6) Ability to experience feeling and movement,
    (7) Ability to communicate,
    (8) Risk of wandering,
    (9) Risk of elopement,
    (10) Risk of suicide,
    (11) Risk of deficiencies regarding social interactions, and
    (12) Special needs (such as medication, diet, nutrition, hydration, 
or prosthetics).
    (c) Coordination of assessments. (1) Each initial and subsequent 
comprehensive assessment must be conducted and coordinated with the 
participation of appropriate health professionals.
    (2) Each person who completes a portion of an assessment must sign 
and certify the accuracy of that portion of the assessment.
    (3) The results of the assessments must be used to develop, review, 
and revise the participant's individualized comprehensive care plan.
    (d) Comprehensive care plans. (1) The State home must ensure that 
each participant has a comprehensive care plan no later than 21 
calendar days after admission. A participant's comprehensive care plan 
must be individualized and must include measurable objectives and 
timetables to meet all physical, mental, and psychosocial needs 
identified in the most recent assessment. The comprehensive care plan 
must describe the following:
    (i) The services that are to be provided as part of the program of 
care and by other sources to attain or maintain the participant's 
highest physical, mental, and psychosocial well-being as required under 
Sec.  51.430;
    (ii) Any services that would otherwise be required under Sec.  
51.430 but are not provided due to the participant's exercise of rights 
under Sec.  51.70, including the right to refuse treatment under Sec.  
51.70(b)(4);
    (iii) Type and scope of interventions to be provided in order to 
reach desired, realistic outcomes;
    (iv) Roles of participant and family/caregiver; and
    (v) Discharge or transition plan, including specific criteria for 
discharge or transfer.
    (2) The services provided or arranged by the State home must
    (i) Meet professional standards of quality; and
    (ii) Be provided by qualified persons in accordance with each 
participant's comprehensive care plan.
    (e) Discharge summary. Prior to discharging a participant, the 
State home must prepare a discharge summary that includes the 
following:
    (1) A summary of the participant's care;
    (2) A summary of the participant's status at the time of the 
discharge to include items in paragraph (b) of this section; and
    (3) A discharge/transition plan related to changes in service needs 
and changes in functional status that prompted transition to another 
program of care.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.430   Quality of care.

    Each participant must receive, and the State home must provide, the 
necessary care and services to attain or maintain the highest 
practicable physical, mental, and psychosocial well-being, in 
accordance with the comprehensive assessment and comprehensive care 
plan.
    (a) Reporting of sentinel events--(1) Definition. A ``sentinel 
event'' is defined in Sec.  51.120(a)(1).
    (2) Duty to report sentinel events. The State home must comply with 
the duties to report sentinel events as set forth in Sec.  
51.120(a)(3), except that the duty to report applies only to a sentinel 
event that occurs while the participant is under the care of the State 
home, including while in State home-provided transportation.
    (3) Review and prevention of sentinel events. The State home must 
establish a mechanism to review and analyze a sentinel event resulting 
in a written report to be submitted to the VA Medical Center of 
jurisdiction no later than 10 working days after the event. The purpose 
of the review and analysis of a sentinel event is to prevent future 
injuries to participants, visitors, and personnel.
    (b) Activities of daily living. Based on the comprehensive 
assessment of a participant, the State home must ensure that:
    (1) No diminution in activities of daily living. A participant's 
abilities in activities of daily living do not diminish unless the 
circumstances of the individual's clinical condition demonstrate that 
diminution was unavoidable. This includes the participant's ability to
    (i) Bathe, dress, and groom;
    (ii) Transfer and ambulate;
    (iii) Toilet; and
    (iv) Eat.
    (2) Appropriate treatment and services given. A participant is 
given the appropriate treatment and services to maintain or improve his 
or her abilities specified in paragraph (b)(1) of this section.
    (3) Necessary services provided to participant unable to carry out 
activities of daily living. A participant who is unable to carry out 
activities of daily living receives the necessary services to maintain 
good nutrition, hydration, grooming, personal and oral hygiene, 
mobility, and bladder and bowel elimination.
    (c) Mental and psychosocial functioning. The State home must make 
counseling and related psychosocial services available for improving 
mental and psychosocial functioning of participants with mental or 
psychosocial needs. The services available must include counseling and 
psychosocial services provided by licensed independent mental health 
professionals.
    (d) Medication errors. The State home must comply with Sec.  
51.120(n) with respect to medication errors.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)

[[Page 61284]]

Sec.  51.435  Nursing services.

    The State home must provide an organized nursing service with a 
sufficient number of qualified nursing personnel to meet the total 
nursing care needs, as determined by participant assessments and 
individualized comprehensive care plans, of all participants in the 
program.
    (a) There must be at least one registered nurse on duty each day of 
operation of the adult day health care program. This nurse must be 
currently licensed by the State and must have, in writing, 
administrative authority, responsibility, and accountability for the 
functions, activities, and training of the nursing and program 
assistants.
    (b) The number and level of nursing staff is determined by the 
authorized capacity of participants and the nursing care needs of the 
participants.
    (c) Nurse staffing must be adequate for meeting the standards of 
this part.


Sec.  51.440  Dietary services.

    The State home must comply with the requirements concerning the 
dietary services set forth in Sec.  51.140, except paragraph 51.140(f). 
For purposes of this section, the references in the cited section to 
resident refer to a participant in subpart F of this part. The State 
home adult day health care program will provide nourishment to 
participants on the following schedule:
    (a) At regular times comparable to normal mealtimes in the 
community, each participant may receive and program management must 
provide at least two meals daily for those veterans staying more than 
four hours and at least one meal for those staying less than four 
hours.
    (b) The program management must offer snacks and fluids as 
appropriate to meet the participants' nutritional and fluid needs.


Sec.  51.445  Physician services.

    As a condition of enrollment in adult day health care program, a 
participant must have a written physician order for admission. Each 
participant's medical record must contain the name of the participant's 
primary care physician. If a participant's medical needs require that 
the participant be placed in an adult day health care program that 
offers medical supervision, the primary care physician must state so in 
the order for admission. Each participant must remain under the care of 
a physician.
    (a) Physician supervision. If the adult day health care program 
offers medical supervision, the program management must ensure that
    (1) The medical care of each participant is supervised by a primary 
care physician; and
    (2) Another physician is available to supervise the medical care of 
participants when their primary care physician is unavailable.
    (b) Frequency of physician reviews. If the adult day health care 
program offers medical supervision:
    (1) The participant must be seen by the primary care physician at 
least annually and as indicated by a change of condition.
    (2) The program management must have a policy to help ensure that 
adequate medical services are provided to the participant.
    (3) At the option of the primary care physician, required reviews 
in the program after the initial review may alternate between personal 
physician reviews and reviews by a physician assistant, nurse 
practitioner, or clinical nurse specialist in accordance with paragraph 
(e) of this section.
    (c) Availability of acute care. If the adult day health care 
program offers medical supervision, the program management must provide 
or arrange for the provision of acute care when it is indicated.
    (d) Availability of physicians for emergency care. In case of an 
emergency, the program management must ensure that participants are 
able to obtain necessary emergency care.
    (e) Physician delegation of tasks. (1) A primary care physician may 
delegate tasks to
    (i) A certified physician assistant or a certified nurse 
practitioner, or
    (ii) A clinical nurse specialist who-
    (A) Is acting within the scope of practice as defined by State law; 
and
    (B) Is under the supervision of the physician.
    (2) The primary care physician may not delegate a task when the 
provisions of this part specify that the primary care physician must 
perform it personally, or when the delegation is prohibited under State 
law or by the State home's policies.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.450  Specialized rehabilitative services.

    (a) Provision of services. If specialized rehabilitative services 
such as, but not limited to, physical therapy, speech therapy, 
occupational therapy, and mental health services for mental illness are 
required in the participant's comprehensive care plan, program 
management must
    (1) Provide the required services; or
    (2) Obtain the required services and equipment from an outside 
resource, in accordance with Sec.  51.210(h), from a provider of 
specialized rehabilitative services.
    (b) Written order. Specialized rehabilitative services must be 
provided under the written order of a physician by qualified personnel.


Sec.  51.455  Dental services.

    (a) If the adult day health care program offers medical 
supervision, program management must, if necessary, assist the 
participant and family/caregiver
    (1) In making dental appointments; and
    (2) By arranging for transportation to and from the dental 
services.
    (b) If the adult day health care program offers medical 
supervision, program management must promptly assist and refer 
participants with lost or damaged dentures to a dentist.


Sec.  51.460  Administration of drugs.

    If the adult day health care program offers medical supervision, 
the program management must assist participants with the management of 
medication and have a system for disseminating drug information to 
participants and program staff in accordance with this section.
    (a) Procedures. The State home must
    (1) Provide reminders or prompts to participants to initiate and 
follow through with self-administration of medications.
    (2) Establish a system of records to document the administration of 
drugs by participants and/or staff.
    (3) Ensure that drugs and biologicals used by participants are 
labeled in accordance with currently accepted professional principles, 
and include the appropriate accessory and cautionary instructions, and 
the expiration dates when applicable.
    (4) Store all drugs, biologicals, and controlled schedule II drugs 
listed in 21 CFR 1308.12 in locked compartments under proper 
temperature controls, permit only authorized personnel to have access, 
and otherwise comply with all applicable State and Federal laws.
    (b) Service consultation. The State home must provide the services 
of a pharmacist licensed in the State in which the program is located 
who provides consultation, as needed, on all the provision of drugs.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)

[[Page 61285]]

Sec.  51.465  Infection control.

    The State home must meet the requirements concerning infection 
control set forth in Sec.  51.190. For purposes of this section, the 
references in the cited section to resident refer to a participant in 
this section.


Sec.  51.470   Physical environment.

    The State home must ensure that the physical environment is 
designed, constructed, equipped, and maintained to protect the health 
and safety of participants, personnel, and the public.
    (a) Life safety from fire. The State home must meet the applicable 
requirements of National Fire Protection Association's NFPA 101, Life 
Safety from fire, as incorporated by reference in Sec.  51.200.
    (b) Space and equipment. (1) The State home must--
    (i) Provide sufficient space and equipment in dining, health 
services, recreation, and program areas to enable staff to provide 
participants with needed services as required by this subpart F and as 
identified in each participant's comprehensive care plan; and
    (ii) Maintain all essential mechanical, electrical, and patient 
care equipment in safe operating condition.
    (2) Each adult day health care program, when it is co-located in a 
nursing home, domiciliary, or other care facility, must have its own 
separate designated space during operational hours.
    (3) The indoor space for adult day health care must be at least 100 
square feet per participant including office space for staff and must 
be 60 square feet per participant excluding office space for staff.
    (4) Each program of care will need to design and partition its 
space to meet its needs, but the following functional areas must be 
available:
    (i) A dividable multipurpose room or area for group activities, 
including dining, with adequate table-setting space.
    (ii) Rehabilitation rooms or an area for individual and group 
treatments for occupational therapy, physical therapy, and other 
treatment modalities.
    (iii) A kitchen area for refrigerated food storage, the preparation 
of meals and/or training participants in activities of daily living.
    (iv) An examination and/or medication room.
    (v) A quiet room (with a bed or a reclining chair), which functions 
to separate participants who become ill or disruptive, or who require 
rest, privacy, or observation. It should be separate from activity 
areas, near a restroom, and supervised.
    (vi) Bathing facilities adequate to facilitate bathing of 
participants with functional impairments.
    (vii) Toilet facilities and bathrooms easily accessible to people 
with mobility problems, including participants in wheelchairs. There 
must be at least one toilet for every eight participants. The toilets 
must be equipped for use by persons with limited mobility, easily 
accessible from all programs areas, i.e., preferably within 40 feet 
from that area, designed to allow assistance from one or two staff, and 
barrier-free.
    (viii) Adequate storage space. There should be space to store arts 
and crafts materials, wheelchairs, chairs, individual handiwork, and 
general supplies. Locked cabinets must be provided for files, records, 
supplies, and medications.
    (ix) An individual room for counseling and interviewing 
participants and family members.
    (x) A reception area.
    (xi) An outside space that is used for outdoor activities that is 
safe, accessible to indoor areas, and accessible to those with a 
disability. This space may include recreational space and garden area. 
It should be easily supervised by staff.
    (c) Furnishings. Furnishings must be available for all 
participants. This must include functional furniture appropriate to the 
participants' needs. Furnishings must be attractive, comfortable, and 
homelike, while being sturdy and safe.
    (d) Participant call system. The coordinator's station must be 
equipped to receive participant calls through a communication system 
from:
    (1) Clinic rooms; and
    (2) Toilet and bathing facilities.
    (e) Other environmental conditions. The State home must provide a 
safe, functional, sanitary, and comfortable environment for the 
participants, staff and the public. The facility management must
    (1) Establish procedures to ensure that water is available to 
essential areas if there is a loss of normal water supply;
    (2) Have adequate outside ventilation by means of windows, or 
mechanical ventilation, or a combination of the two;
    (3) Equip corridors, when available, with firmly-secured handrails 
on each side; and
    (4) Maintain an effective pest control program so that the facility 
is free of pests and rodents.


Sec.  51.475  Administration.

    For purposes of this section, the references in the cited section 
to nursing home and nursing home care refer to adult day health care 
programs and adult day health care. The State home must comply with all 
administration requirements set forth in Sec.  51.210 except for the 
following if the adult day health care program does not offer medical 
supervision:
    (a) Medical director. State home adult day health care programs are 
not required to designate a primary care physician to serve as a 
medical director, and therefore are not required to comply with Sec.  
51.210(i).
    (b) Laboratory services, radiology, and other diagnostic services. 
State home adult day health care programs are not required to provide 
the medical services identified in Sec.  51.210(m) and (n).
    (c) Quality assessment and assurance committee. State home adult 
day health care programs are not required to comply with Sec.  
51.210(p), regarding quality assessment and assurance committees 
consisting of specified medical providers and staff.

(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0160.)


Sec.  51.480  Transportation.

    Transportation of participants to and from the adult day health 
care facility must be a component of the overall program of care.
    (a)(1) Except as provided in paragraph (a)(2) of this section, the 
State home must provide for transportation to enable participants, 
including persons with disabilities, to attend the program and to 
participate in State home-sponsored outings.
    (2) The veteran or the family of a veteran may decline 
transportation offered by the adult day health care program and make 
their own arrangements for transportation.
    (b) The State home must have a transportation policy that includes 
procedures for routine and emergency transportation. All transportation 
(including that provided under contract) must be in compliance with 
such procedures.
    (c) The State home must ensure that the transportation it provides 
is by drivers who have access to a device for two-way communication.

[[Page 61286]]

    (d) All systems and vehicles used by the State home to comply with 
this section must meet all applicable local, State and Federal 
regulations.
    (e) The State home must ensure that the care needs of each 
participant are addressed during transportation furnished by the home.

PART 52--[REMOVED]

0
 23. Remove part 52, consisting of Sec. Sec.  52.1 through 52.220.

[FR Doc. 2018-25115 Filed 11-27-18; 8:45 am]
 BILLING CODE 8320-01-P