CMS Indefinitely Suspends Nursing Home Ownership Reporting Amid PECOS Technical Issues

The Centers for Medicare & Medicaid Services (CMS) has indefinitely suspended the national revalidation effort requiring all federally funded nursing homes to report expanded ownership and investor information. This decision follows technical issues with the digital Provider Enrollment, Chain, and Ownership System (PECOS), which led to partial deletions of some in-progress revalidation applications. Originally, the deadline for this revalidation was set for January 1, 2026, but CMS has removed any submission due dates until further notice. CMS confirmed in recent guidance that applications not submitted may have been deleted due to inactivity in PECOS. The agency is exploring possibilities to recover these applications but acknowledges recovery may not always be feasible. CMS advised providers to keep updating their applications at least once every 120 days to prevent removal due to inactivity and to continue collecting ownership and managerial data. Industry groups such as the American Health Care Association and LeadingAge have acknowledged CMS's move and called for clearer guidance on future reporting requirements. The American Health Care Association emphasized the need to prioritize patient care over bureaucratic processes while maintaining transparency regarding ownership. LeadingAge highlighted that the data collection initiative continues despite the suspension, stressing the importance of preparing for future compliance demands. This suspension applies not only to ongoing revalidations but also to initial, reactivation, or change-of-ownership (CHOW) applications submitted before October 1, 2024. CMS has committed to working with nursing homes to reduce the burden caused by these disruptions and has pledged to update providers with further instructions regarding file recovery and submission deadlines. The indefinite suspension and associated technical challenges underscore ongoing complexities in regulatory compliance for nursing homes, highlighting the need for reliable digital infrastructure in payer-provider systems. CMS's guidance reflects an effort to balance administrative oversight with operational realities in the long-term care sector. Providers are urged to prepare for eventual resumption of revalidation and remain vigilant in ownership data management to ensure regulatory adherence once the program restarts.