Nursing homes and other healthcare facilities must be administered in a way that uses resources effectively to ensure the best physical, mental, and psychosocial wellbeing of residents. This includes the facility's operating budget, staff, supplies, and other services. If the actions, inactions, or decisions of the facility's administration contribute to deficient practices, they will be cited. The investigation must demonstrate how the administration knew or should have known of the deficient practice and how their lack of involvement contributed to it. Nursing homes and other healthcare facilities must take action to ensure their administration is aware of and actively involved in preventing deficient practices.

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