Virginia Regulatory Town Hall
Department of Medical Assistance Services
Board of Medical Assistance Services

General Notice
Public Notice - Intent to Amend State Plan - Nursing Facility Value-Based Purchasing Program
Date Posted: 6/28/2022
Expiration Date: 12/28/2022
Submitted to Registrar for publication: YES
30 Day Comment Forum closed. Began on 6/28/2022 and ended 7/28/2022






(Pursuant to §1902(a)(13) of the Act (U.S.C. 1396a(a)(13))




This Notice was posted on June 28, 2022


The Virginia Department of Medical Assistance Services (DMAS) hereby affords the public notice of its intention to amend the Virginia State Plan for Medical Assistance to provide for changes to the Methods and Standards for Establishing Payment Rates – Long-Term Care (12 VAC 30-90).  


This notice is intended to satisfy the requirements of 42 C.F.R. § 447.205 and of § 1902(a)(13) of the Social Security Act, 42 U.S.C. § 1396a(a)(13).  A copy of this notice is available for public review from Meredith Lee, DMAS, 600 Broad Street, Suite 1300, Richmond, VA  23219, or via e-mail at: 


DMAS is specifically soliciting input from stakeholders, providers and beneficiaries, on the potential impact of the proposed changes discussed in this notice.  Comments or inquiries may be submitted, in writing, within 30 days of this notice publication to Meredith Lee and such comments are available for review at the same address.  Comments may also be submitted, in writing, on the Town Hall public comment forum attached to this notice.


This notice is available for public review on the Regulatory Town Hall ( on the General Notices page, found at:


Methods & Standards for Establishing Payment Rates-Long-Term Care (12 VAC 30-90)


In accordance with the 2022 Special Session, Item 304.OOO, the state plan is being revised to establish a unified, value-based purchasing (VBP) program that includes enhanced funding for facilities that meet or exceed performance and/or improvement thresholds as developed, reported, and consistently measured by DMAS in cooperation with participating facilities. Nursing facility performance evaluation under the program shall prioritize maintenance of adequate staffing levels and avoidance of negative care events, such as hospital admissions and emergency department visits. The program may also consider performance evaluation in the areas of preventive care, utilization of home and community-based services, including community transitions, and other relevant domains of care.


During the first year of this program, half of the available funding shall be distributed to participating nursing facilities to be invested in functions, staffing, and other efforts necessary to build their capacity to enhance the quality of care furnished to Medicaid members. This funding shall be administered as a Medicaid rate add-on. The remaining funding shall be allocated based on performance criteria as designated under the nursing facility VBP program. The amount of funding devoted to nursing facility quality of care investments shall be 25 percent of available funding in the second year of the program before the program transitions to payments based solely on nursing facility performance criteria in the third year of the program. In the third year of this program, such funds as appropriated for this purpose shall be fully disbursed according to the aforementioned unified VBP arrangement to participating nursing facilities that qualify for the enhanced funding.


The department shall convene the stakeholders no less than annually through at least the first two years of the program to review program progress and discuss potential modifications to components of the arrangement, including, but not limited to, timing of enhanced payments, performance metrics, and threshold determinations.


Complete details including technical information regarding program eligibility, performance measures, performance thresholds and payments are available on DMAS’ website at the following address: will be effective beginning July 1, 2022.


The expected increase in annual aggregate expenditures is $166,715 in state general funds, $458 in special funds, and $218,039 in federal funds in federal fiscal year 2022.


Contact Information
Name / Title: Meredith Lee  / Policy, Regulations, and Manuals Supervisor
Address: Division of Policy and Research
600 E. Broad Street, Suite 1300
Richmond, 23219
Email Address:
Telephone: (804)371-0552    FAX: (804)786-1680    TDD: (800)343-0634