SF 2750

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 11/05/2025 01:36 p.m.

A bill for an act
relating to human services; correcting terminology related to nursing facility
payment rates; amending Minnesota Statutes 2024, section 256R.38.

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

Section 1.

Minnesota Statutes 2024, section 256R.38, is amended to read:

256R.38 PERFORMANCE-BASED INCENTIVE PAYMENTS.

The commissioner shall develop additional incentive-based payments of up to five
percent above a facility's operating payment rate for achieving outcomes specified in a
contract. The commissioner may solicit proposals and select those which, on a competitive
basis, best meet the state's policy objectives. The commissioner shall limit the amount of
any incentive payment and the number of contract amendments under this section to operate
the incentive payments within funds appropriated for this purpose. The commissioner shall
approve proposals through a memorandum of understanding which shall specify various
levels of payment for various levels of performance. Incentive payments to facilities under
this section shall be in the form of time-limited rate adjustments which shall be included in
the external fixed new text begin costs new text end payment rate under section 256R.25. In establishing the specified
outcomes and related criteria, the commissioner shall consider the following state policy
objectives:

(1) successful diversion or discharge of residents to the residents' prior home or other
community-based alternatives;

(2) adoption of new technology to improve quality or efficiency;

(3) improved quality as measured in the Minnesota Nursing Home Report Card;

(4) reduced acute care costs; and

(5) any additional outcomes proposed by a nursing facility that the commissioner finds
desirable.