HF 1913

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/16/2023 01:41pm

A bill for an act
relating to human services; modifying nursing facility property payment rates;
amending Minnesota Statutes 2022, section 256R.26, subdivision 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 256R.26, subdivision 9, is amended to read:

Subd. 9.

Transition period.

(a) A facility's property payment rate is the property rate
established for the facility under sections 256B.431 and 256B.434 until the facility's property
rate is transitioned upon completion of any project authorized under section 144A.071,
subdivision 3 or 4d; or 144A.073, subdivision 3, to the fair rental value property rate
calculated under this chapter. new text begin A facility with a project authorized under section 144A.071,
subdivision 3 or 4d; or 144A.073, subdivision 3, that was approved prior to January 1, 2020,
but completed after January 1, 2020, must receive the property rate calculated under this
chapter.
new text end

(b) Effective the first day of the first month of the calendar quarter after the completion
of the project described in paragraph (a), the commissioner shall transition a facility to the
property payment rate calculated under this chapter. The initial rate year ends on December
31 and may be less than a full 12-month period. The commissioner shall schedule an appraisal
within 90 days of the commissioner receiving notification from the facility that the project
is completed. The commissioner shall apply the property payment rate determined after the
appraisal retroactively to the first day of the first month of the calendar quarter after the
completion of the project.

(c) Upon a facility's transition to the fair rental value property rates calculated under this
chapter, the facility's total property payment rate under subdivision 8 shall be the only
payment for costs related to capital assets, including depreciation, interest and lease expenses
for all depreciable assets, including movable equipment, land improvements, and land.
Facilities with property payment rates established under subdivisions 1 to 8 are not eligible
for planned closure rate adjustments under section 256R.40; consolidation rate adjustments
under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d;
single-bed room incentives under section 256R.41; and the property rate inflation adjustment
under section 256B.434, subdivision 4. The commissioner shall remove any of these
incentives from the facility's existing rate upon the facility transitioning to the fair rental
value property rates calculated under this chapter.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section applies to nursing home
moratorium exception projects approved on or after January 1, 2018, and is effective
retroactively from January 1, 2018.
new text end