HF 3483

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; removing the limit on certain nursing facility planned
closure rate adjustments; amending Minnesota Statutes 2004, section 256B.437,
subdivision 3.

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

Section 1.

Minnesota Statutes 2004, section 256B.437, subdivision 3, is amended to
read:

Subd. 3.

Applications for planned closure of nursing facilities.

(a) By August
15, 2001, the commissioner of human services shall implement and announce a program
for closure or partial closure of nursing facilities. Names and identifying information
provided in response to the announcement shall remain private unless approved, according
to the timelines established in the plan. The announcement must specify:

(1) the criteria in subdivision 4 that will be used by the commissioner to approve or
reject applications;

(2) the information that must accompany an application; and

(3) that applications may combine planned closure rate adjustments with moratorium
exception funding, in which case a single application may serve both purposes.

Between August 1, 2001, and June 30, 2003, the commissioner may approve planned
closures of up to 5,140 nursing facility beds, less the number of beds delicensed in
facilities during the same time period without approved closure plans or that have notified
the commissioner of health of their intent to close without an approved closure plan.
Beginning July 1, 2004, the commissioner may negotiate a planned closure new text begin rate adjustment
new text end for nursing facilities providing the proposal has no cost to the state. new text begin For planned closure
rate adjustments negotiated after March 1, 2006, the limit of $2,080 in subdivision 6,
paragraph (a), clause (1), shall not apply. The removal of the limit in subdivision 6,
paragraph (a), clause (1), shall not constitute an increase to the amount specified in
subdivision 6, paragraph (a), clause (1), for the purposes of subdivision 6, paragraph (f).
new text end

(b) A facility or facilities reimbursed under section 256B.431 or 256B.434 with a
closure plan approved by the commissioner under subdivision 5 may assign a planned
closure rate adjustment to another facility or facilities that are not closing or in the case of
a partial closure, to the facility undertaking the partial closure. A facility may also elect to
have a planned closure rate adjustment shared equally by the five nursing facilities with
the lowest total operating payment rates in the state development region designated under
section 462.385, in which the facility that is closing is located. The planned closure
rate adjustment must be calculated under subdivision 6. Facilities that delicense beds
without a closure plan, or whose closure plan is not approved by the commissioner, are not
eligible to assign a planned closure rate adjustment under subdivision 6, unless they are
delicensing five or fewer beds, or less than six percent of their total licensed bed capacity,
whichever is greater, are located in a county in the top three quartiles of beds per 1,000
persons aged 65 or older, and have not delicensed beds in the prior three months. Facilities
meeting these criteria are eligible to assign the amount calculated under subdivision 6 to
themselves. If a facility is delicensing the greater of six or more beds, or six percent or
more of its total licensed bed capacity, and does not have an approved closure plan or is
not eligible for the adjustment under subdivision 6, the commissioner shall calculate the
amount the facility would have been eligible to assign under subdivision 6, and shall use
this amount to provide equal rate adjustments to the five nursing facilities with the lowest
total operating payment rates in the state development region designated under section
462.385, in which the facility that delicensed beds is located.

(c) To be considered for approval, an application must include:

(1) a description of the proposed closure plan, which must include identification of
the facility or facilities to receive a planned closure rate adjustment;

(2) the proposed timetable for any proposed closure, including the proposed dates
for announcement to residents, commencement of closure, and completion of closure;

(3) if available, the proposed relocation plan for current residents of any facility
designated for closure. If a relocation plan is not available, the application must include a
statement agreeing to develop a relocation plan designed to comply with section 144A.161;

(4) a description of the relationship between the nursing facility that is proposed for
closure and the nursing facility or facilities proposed to receive the planned closure rate
adjustment. If these facilities are not under common ownership, copies of any contracts,
purchase agreements, or other documents establishing a relationship or proposed
relationship must be provided;

(5) documentation, in a format approved by the commissioner, that all the nursing
facilities receiving a planned closure rate adjustment under the plan have accepted joint
and several liability for recovery of overpayments under section 256B.0641, subdivision
2, for the facilities designated for closure under the plan; and

(6) an explanation of how the application coordinates with planning efforts under
subdivision 2. If the planning group does not support a level of nursing facility closures
that the commissioner considers to be reasonable, the commissioner may approve a
planned closure proposal without its support.

(d) The application must address the criteria listed in subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from March 1, 2006.
new text end