Michigan Nursing Home Administrator (NHA) Practice Exam

How is facility licensing categorized compared to certification?

1. Optional; mandatory

2. Mandatory; voluntary

3. Voluntary; optional

4. Mandatory; mandatory

The correct answer is: Mandatory; voluntary

Facility licensing and certification serve different purposes within the healthcare system, particularly in the context of nursing homes and long-term care facilities. Licensing is a legal requirement enforced by state governments to ensure that facilities meet certain standards of care and operational practices. This means that all nursing homes must obtain a license to operate, making licensing mandatory. Certification, on the other hand, is typically associated with meeting specific federal standards, especially for facilities that accept Medicare and Medicaid. While many facilities pursue certification to allow their residents to access these funding sources, it is not required for all facilities. Therefore, certification can be seen as voluntary, depending on the facility's operational choices. The distinction lies in understanding that while licensing is essential for legal operation, certification adds layers for federal reimbursement eligibility but is not universally mandatory for all care facilities. This clear differentiation supports the understanding that licensing is mandatory while certification can be optional for facilities not seeking federal funding.