Part of the Omnibus Budget Reconciliation Act, the Nursing Home Reform Act establishes a bill of rights for nursing home residents. It includes: the right to freedom from abuse, mistreatment, and neglect; the right to freedom from physical restraints; the right to privacy; the right to accommodation of medical, physical, psychological, and social needs; the right to participate in resident and family groups; the right to be treated with dignity; the right to exercise self-determination; the right to communicate freely; the right to participate in the review of one's care plan, and to be fully informed in advance about any changes in care, treatment, or change of status in the facility; and the right to voice grievances without discrimination or reprisal.

The Act also establishes other standards of care and systems of enforcement, and it will create significant improvement in nursing facilities over the subsequent years. However, many facilities will continue to fail to meet these standards. Critics of the Act have also pointed to its insufficient staffing requirements.