HF 1016

as introduced - 87th Legislature (2011 - 2012) Posted on 03/10/2011 09:41am

A bill for an act
relating to health; providing for consolidation of nursing facilities; amending
Minnesota Statutes 2010, section 144A.071, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2010, section 144A.071, is amended by adding a
subdivision to read:

new text begin Subd. 4d. new text end

new text begin Consolidation of nursing facilities. new text end

new text begin (a) The commissioner of health,
in consultation with the commissioner of human services, must approve a request for
consolidation of nursing facilities under common ownership or management, which
includes the closure of one or more facilities and the upgrading of the physical plant of the
remaining nursing facility or facilities, the costs of which exceed the threshold project
limit under subdivision 2, clause (a). The commissioners shall consider the criteria in this
section and section 256B.437 in approving or rejecting a consolidation proposal. In the
event the commissioners approve the request, the commissioner of human services shall
calculate a property rate adjustment according to clauses (1) to (3).
new text end

new text begin (1) The closure of beds shall not be eligible for a planned closure rate adjustment
under section 256B.437, subdivision 6.
new text end

new text begin (2) The construction project permitted in this subdivision shall not be eligible for a
threshold project rate adjustment under section 256B.434, subdivision 4f, or a moratorium
exception adjustment under section 144A.073.
new text end

new text begin (3) The property payment rate for remaining facilities shall be increased by an
amount equal to 66.7 percent of the projected net cost savings to the state resulting from
the closure of nursing facility beds, divided by the state's share of medical assistance
dollars, and that result divided by projected medical assistance resident days of the
surviving nursing facility.
new text end

new text begin (b) For purposes of calculating the net cost savings to the state, the commissioner
shall consider clauses (1) to (7):
new text end

new text begin (1) the annual savings from estimated per diem payments from the net number
of beds closed;
new text end

new text begin (2) the estimated annual cost of increased home-care case load of individuals
receiving services under the elderly waiver;
new text end

new text begin (3) the estimated annual cost of elderly waiver recipients receiving support under
group residential housing;
new text end

new text begin (4) the estimated annual cost of increased home-care case load of individuals
receiving services under the alternative care program;
new text end

new text begin (5) the annual loss of license surcharge payments on closed beds;
new text end

new text begin (6) the savings from not receiving planned closure rate adjustments that the facilities
would otherwise be eligible for under section 256B.437; and
new text end

new text begin (7) the savings from not receiving property payment rate adjustments from
submission of renovation costs that would otherwise be eligible as threshold projects
under section 256B.434, subdivision 4f.
new text end

new text begin (c) For purposes of this calculation, the estimated medical assistance resident days
of the remaining facilities shall be computed assuming 95 percent occupancy multiplied
by the historical percentage of medical assistance resident days of the remaining facilities
multiplied by 365.
new text end

new text begin (d) For purposes of net cost savings to the state in paragraph (b), the average
occupancy percentages shall be those reported on the facilities' most recent nursing facility
statistical and cost report filed before the plan of closure is submitted, and the average
payment rates shall be calculated based on the approved payment rates in effect at the
time the consolidation request is submitted.
new text end

new text begin (e) To qualify for the property payment rate adjustment under this subdivision,
the closing facilities shall:
new text end

new text begin (1) submit an application for closure according to section 256B.437, subdivision 3,
and be approved under the criteria included in section 256B.437, subdivision 4; and
new text end

new text begin (2) follow the resident relocation provisions of section 144A.161.
new text end