Article: GAO: HCFA FAILED TO SANCTION CALIF. NURSING HOMES

Since July 1995, nearly 10% of all nursing homes in California were found by state and federal investigators to have serious quality deficiencies for two straight years, but only a quarter of those were ever sanctioned by HCFA, according to a report released last week.

The General Accounting Office report led to accusations by lawmakers that HCFA had been hoodwinked by nursing homes.

The GAO undertook the study at the behest of Sen. Charles Grassley (R-Iowa), chairman of the Senate Special Committee on Aging. Grassley said HCFA has been "taken to the cleaners" by nursing homes that took advantage of HCFA's policy of allowing facilities a grace period to ...

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