Intermediate Care Facilities create catch-all for non-compliant homes.

The 1967 amendments also created a new category of nursing home, called Intermediate Care Facilities (ICF) for facilities which cared for residents that did not need 24-hour-a-day nursing services, but who needed custodial care. The definition of an ICF was not clear, and states began using it as a catch-all for any nursing home unable to meet other standards, in order to get a federal match on their expenditures. HEW tried to create standards, but finally withdrew their proposed ICF regulations when the states protested, and the ICF category remained in limbo until 1971, when ICF standards were finally agreed on and included in Medicaid.