1.1                          A bill for an act 
  1.2             relating to human services; providing a rate 
  1.3             adjustment for a 103-bed nursing facility located in 
  1.4             Rochester; amending Minnesota Statutes 1998, section 
  1.5             256B.434, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 256B.434, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 18.  [RATE ADJUSTMENT.] (a) For the rate year 
  1.10  beginning July 1, 2000, before computing any other applicable 
  1.11  increase, the commissioner shall calculate the payment rate for 
  1.12  a nursing facility located in Rochester, Minnesota and licensed 
  1.13  for 103 beds on January 1, 2000, by increasing the nursing 
  1.14  facility's payment rate computed according to this section for 
  1.15  case mix resident class A by $6.63, and increasing the payment 
  1.16  rate for all other case mix classes by that amount multiplied by 
  1.17  the class weight for that case mix class established in 
  1.18  Minnesota Rules, part 9549.0058, subpart 3.  The resulting total 
  1.19  payment rate for each case mix level shall constitute this 
  1.20  facility's contract payment rates for purposes of any annual 
  1.21  adjustment for rate years beginning on or after July 1, 2000. 
  1.22     (b) Notwithstanding any provision to the contrary under 
  1.23  this section, for rate years beginning on or after July 1, 2000, 
  1.24  a nursing facility located in Rochester, Minnesota and licensed 
  1.25  for 103 beds on January 1, 2000, which has reduced its licensed 
  2.1   capacity after June 1, 2000, shall be allowed to: 
  2.2      (1) aggregate the applicable investment per bed limits 
  2.3   based on the number of beds licensed immediately prior to 
  2.4   entering the alternative payment system; and 
  2.5      (2) establish capacity days for each rate year following 
  2.6   the licensure reduction based on the number of beds licensed 
  2.7   after the reduction. 
  2.8   The commissioner shall increase the facility's property-related 
  2.9   rate by the incremental increase in the rental per diem 
  2.10  resulting from the recalculation of the facility's rental per 
  2.11  diem applying only the changes resulting from the provisions of 
  2.12  clauses (1) and (2).  The increase shall be effective the first 
  2.13  day of the month following the month in which the facility 
  2.14  delicenses the beds and provides written notice of the 
  2.15  delicensure to the commissioner.  This notice must include a 
  2.16  copy of the delicensure request that has been submitted to the 
  2.17  commissioner of health.