CMS AND HOSPITAL REINBURSMENT FOR NEVER EVENTS Never Events are errors in medical care that are of concern to both the public and healthcare professionals, and providers. The term "Never Event" was first introduced in 2001 by Ken Kizer, MD, former CEO of the National Quality Forum (NQF), in reference to particularly shocking medical errors such as wrong-site surgery that should never occur (Rosenthal 2012). The CMS issued new rules in 2008 that halt payment to hospitals for treatment of preventable patient complications and injuries, which referred to as “Never Events”. Ten categories of hospital-acquired condition that are reasonably preventable were identify by CMS (ECRI 2008). These are pressure ulcer stages III and IV; falls and trauma; surgical site infection after bariatric surgery for obesity, certain orthopedic procedures, and bypass surgery ,vascular- catheter associated infection; catheter-associated urinary tract infection; administration of incompatible blood; air embolism; and foreign object unintentionally retained after surgery All these are preventable conditions and are subject to nonpayment. This rule that halt payment to hospitals for preventable patient complication and injuries, has tremendous effect on hospital nursing practice. (Herb 2009). As the public becomes aware of the new CMS rules, legal concern have been raise about an increase in malpractice claims related to hospital acquired conditions. Strict liability imposes legal responsibility for damages or injury even if the hospital is not strictly at fault or negligent (Vonwinkel, 2008). In 2011 National Quality Forum (NQF) recently defined 29 Never Events which are now groups into 6 categories, which are surgical, product or device, patient protection, care management, environmental, radiologic and criminal(Rosenthal 2012). The intention of CMS is to avoid Federal and State