What the CMS 5-Star Rating Actually Means
The Centers for Medicare & Medicaid Services (CMS) assigns every Medicare- and Medicaid-certified nursing home an overall rating of 1 to 5 stars. This isn't a single score — it's a composite of three separate rating domains, each weighted differently in the final calculation.
The three components are:
- Health Inspection Rating — Based on the results of on-site surveys conducted by state agencies. Inspectors look for deficiencies in care, safety, residents' rights, and facility environment.
- Staffing Rating — Reflects the number of hours per resident per day provided by registered nurses (RNs), licensed practical nurses (LPNs), and certified nursing aides (CNAs), adjusted for each facility's patient acuity mix.
- Quality Measures Rating — Tracks clinical outcomes such as the percentage of residents with pressure ulcers, falls, or unnecessary antipsychotic medications — drawn from the Minimum Data Set (MDS) submitted to CMS.
The Health Inspection component carries the most weight in the overall rating. A facility can score well on staffing and quality measures but still receive a low overall rating if it has recent serious inspection deficiencies.
TheCareRatings Database
Our database tracks the overall rating of 33,904 nursing homes nationwide. Only 9% — roughly 2,949 facilities — hold a 5-star "Excellent" rating. Use our star rating filter to view exclusively top-rated options.
When evaluating a facility, don't stop at the overall star. Click through to inspect each sub-rating independently. A facility with a 4-star overall but a 1-star health inspection rating may be masking serious safety problems behind decent staffing numbers.
Understanding Nursing Home Penalties and Fines
Federal penalties against nursing homes are issued by CMS when surveyors find violations that pose immediate jeopardy to residents, constitute actual harm, or represent a pattern of deficient practice. They are not minor paperwork issues — they signal serious problems with care quality or resident safety.
Penalties can take two forms:
- Civil Money Penalties (CMPs) — Dollar fines that escalate based on the severity and duration of the deficiency. Per-day fines for ongoing violations can compound rapidly into six- or seven-figure totals.
- Denial of Payment for New Admissions (DPNA) — CMS stops reimbursing the facility for any new Medicare or Medicaid residents until deficiencies are corrected.
Common triggers for penalties include abuse or neglect of residents, failure to maintain a safe physical environment, inadequate infection control practices, and insufficient staffing levels during surveys.
TheCareRatings Database
We track total penalties and total fines for every facility in our database. Across all 33,904 nursing homes, we have indexed $480.1M in total federal fines — an average of $71K per facility that has been fined. Use the "Zero Federal Penalties" toggle to immediately filter out any facility with a penalty history.
A penalty in the past doesn't automatically disqualify a facility — what matters is whether deficiencies have been corrected and whether the pattern is improving. A single fine from five years ago tells a different story than multiple fines in the last twelve months.
Facility Size and Ownership: Does it Matter?
Nursing homes in the United States operate under three primary ownership structures, and research consistently shows that ownership type correlates with quality outcomes.
- Non-Profit — Operated by religious organizations, community foundations, or charitable entities. Non-profits are not required to return profits to shareholders, which means surpluses are typically reinvested in care, staffing, and facility improvements. Research shows non-profits consistently outperform for-profits on quality measures and inspection outcomes.
- For-Profit — Private companies or chains required to generate returns for investors. Not inherently inferior, but for-profits must balance care investment against profitability — a tension that can show up in staffing ratios and inspection results.
- Government — County- or state-operated facilities, often serving Medicaid-heavy populations. Quality varies significantly by jurisdiction and funding levels.
Facility size, measured by certified beds, also shapes the resident experience. Smaller facilities (under 60 beds) often provide more intimate, person-centered care but may have fewer specialized clinical resources. Large facilities (150+ beds) may offer broader services and better specialty staffing but can feel institutional and impersonal.
There is no universally "correct" size. Consider your loved one's medical complexity, their need for community and engagement, and the staffing levels relative to bed count — not beds alone.
How to Use TheCareRatings to Find the Right Nursing Home
Our facility database combines CMS ratings, federal penalty records, staffing data, and community health indicators into a single, free platform. Here is a step-by-step approach to building your shortlist:
- Step 1 — Set your location and radius. Use the distance filter to define how far you're willing to travel. A 10-mile radius in an urban area might return 50+ facilities; a 25-mile radius in a rural area might return 10. Start wide and narrow from there.
- Step 2 — Apply the "Zero Federal Penalties" toggle. This immediately removes any facility that has received a federal penalty in the CMS reporting period — a quick way to eliminate the bottom tier.
- Step 3 — Filter by CMS star rating. Start with 4- and 5-star facilities. If your area has limited options, expand to 3-star and examine each sub-rating individually.
- Step 4 — Filter by ownership type. If non-profit status is a priority for your family, use the ownership filter to surface only non-profit facilities.
- Step 5 — Review individual facility profiles. Each profile shows detailed staffing ratios, health inspection history, quality measure scores, and penalty records. Use this data to rank your shortlist before scheduling visits.
- Step 6 — Visit in person. No dataset replaces a direct observation. Visit at different times of day, speak to current residents and staff, and ask about the typical nurse-to-resident ratio on evenings and weekends — when staffing levels typically drop.
Pro Tip
The national average CMS rating across our database is 3.1 stars. Any facility rated 4 stars or above is in the top tier. Filter by "Highest Rated" first, then refine by distance and penalties to surface the best options in your area.









