1.1 	A bill for an act
1.2 	relating to health; providing for consolidation of nursing facilities;amending 
1.3 	Minnesota Statutes 2010, section 144A.071, by adding a subdivision.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 144A.071, is amended by adding a 
1.6 	subdivision to read:
1.7 		Subd. 4d.Consolidation of nursing facilities. (a) The commissioner of health, 
1.8 	in consultation with the commissioner of human services, must approve a request for 
1.9 	consolidation of nursing facilities under common ownership or management, which 
1.10 	includes the closure of one or more facilities and the upgrading of the physical plant of the 
1.11 	remaining nursing facility or facilities, the costs of which exceed the threshold project 
1.12 	limit under subdivision 2, clause (a). The commissioners shall consider the criteria in this 
1.13 	section and section 256B.437 in approving or rejecting a consolidation proposal. In the 
1.14 	event the commissioners approve the request, the commissioner of human services shall 
1.15 	calculate a property rate adjustment according to clauses (1) to (3).
1.16 	(1) The closure of beds shall not be eligible for a planned closure rate adjustment 
1.17 	under section 256B.437, subdivision 6.
1.18 	(2) The construction project permitted in this subdivision shall not be eligible for a 
1.19 	threshold project rate adjustment under section 256B.434, subdivision 4f, or a moratorium 
1.20 	exception adjustment under section 144A.073.
1.21 	(3) The property payment rate for remaining facilities shall be increased by an 
1.22 	amount equal to 66.7 percent of the projected net cost savings to the state resulting from 
1.23 	the closure of nursing facility beds, divided by the state's share of medical assistance 
2.1 	dollars, and that result divided by projected medical assistance resident days of the 
2.2 	surviving nursing facility.
2.3 	(b) For purposes of calculating the net cost savings to the state, the commissioner 
2.4 	shall consider clauses (1) to (7):
2.5 	(1) the annual savings from estimated per diem payments from the net number 
2.6 	of beds closed; 
2.7 	(2) the estimated annual cost of increased home-care case load of individuals 
2.8 	receiving services under the elderly waiver;
2.9 	(3) the estimated annual cost of elderly waiver recipients receiving support under 
2.10 	group residential housing;
2.11 	(4) the estimated annual cost of increased home-care case load of individuals 
2.12 	receiving services under the alternative care program;
2.13 	(5) the annual loss of license surcharge payments on closed beds;
2.14 	(6) the savings from not receiving planned closure rate adjustments that the facilities 
2.15 	would otherwise be eligible for under section 256B.437; and
2.16 	(7) the savings from not receiving property payment rate adjustments from 
2.17 	submission of renovation costs that would otherwise be eligible as threshold projects 
2.18 	under section 256B.434, subdivision 4f.
2.19 	(c) For purposes of this calculation, the estimated medical assistance resident days 
2.20 	of the remaining facilities shall be computed assuming 95 percent occupancy multiplied 
2.21 	by the historical percentage of medical assistance resident days of the remaining facilities 
2.22 	multiplied by 365.
2.23 	(d) For purposes of net cost savings to the state in paragraph (b), the average 
2.24 	occupancy percentages shall be those reported on the facilities' most recent nursing facility 
2.25 	statistical and cost report filed before the plan of closure is submitted, and the average 
2.26 	payment rates shall be calculated based on the approved payment rates in effect at the 
2.27 	time the consolidation request is submitted.
2.28 	(e) To qualify for the property payment rate adjustment under this subdivision, 
2.29 	the closing facilities shall:
2.30 	(1) submit an application for closure according to section 256B.437, subdivision 3, 
2.31 	and be approved under the criteria included in section 256B.437, subdivision 4; and
2.32 	(2) follow the resident relocation provisions of section 144A.161.