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Key: (1) language to be deleted (2) new language

                             CHAPTER 36-H.F.No. 275 
                  An act relating to human services; modifying the 
                  procedure for counting savings under nursing facility 
                  closure plans; amending Minnesota Statutes 2000, 
                  section 256B.436, subdivision 6. 
           Section 1.  Minnesota Statutes 2000, section 256B.436, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COST SAVINGS OF CLOSURE.] For purposes of this 
        section, the calculation of medical assistance cost savings from 
        the closure of a nursing facility designated for closure under a 
        closure plan shall be according to the following criteria: 
           (a) The projected medical assistance savings of the closure 
        of a facility shall be the aggregate medical assistance payments 
        to the facility for the most recently completed state fiscal 
        year prior to submission of the proposal, as reflected in the 
        number of resident days of care for each resident class provided 
        by the facility in that fiscal year, multiplied by the payment 
        rate for each resident class. 
           (b) If one or more facilities designated for closure in an 
        approved closure plan are not able to be closed for any reason, 
        or projection of savings for that closure are otherwise 
        prohibited under this section, the projected medical assistance 
        savings from that closure may not be offset against the medical 
        assistance costs of special rate adjustments under the plan.  In 
        that event, the applicant must notify the commissioner in 
        writing and the applicant must either amend its proposal by 
        reducing the special rate adjustment to reduce the medical 
        assistance cost of the plan by at least the amount of the 
        medical assistance savings that were projected from the closure 
        of that facility or withdraw the plan. 
           (c) No medical assistance savings shall be projected from 
        closure of a nursing facility that is designated for closure 
        under a closure plan, if the facility is:  (1)  subject to 
        adverse licensure action under section 144A.11; or (2) located 
        in a county with a ratio of nursing facility beds to county 
        residents age 85 and over that is in the lowest quartile of all 
        counties in the state, at the time the proposal is submitted or 
        at the commencement of closure. 
           (d) Medical assistance savings under paragraph (a) shall be 
        recognized for purposes of this section beginning the first day 
        of the month following the month of completion of closure for 
        all facilities designated for closure under the plan, or all 
        facilities designated for closure under that phase for a phased 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 
           Presented to the governor April 20, 2001 
           Signed by the governor April 24, 2001, 10:07 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes