1998 Minnesota Statutes

     256B.5011 ICF/MR reimbursement system effective October 
  1, 2000. 

    Subdivision 1.    In general.  Effective October 1, 
 2000, the commissioner shall implement a performance-based 
 contracting system to replace the current method of setting 
 total cost payment rates under section 256B.501 and Minnesota 
 Rules, parts 9553.0010 to 9553.0080.  In determining prospective 
 payment rates of intermediate care facilities for persons with 
 mental retardation or related conditions, the commissioner shall 
 index each facility's total payment rate by an inflation factor 
 as described in subdivision 3.  The commissioner of finance 
 shall include annual inflation adjustments in operating costs 
 for intermediate care facilities for persons with mental 
 retardation and related conditions as a budget change request in 
 each biennial detailed expenditure budget submitted to the 
 legislature under section 16A.11. 

    Subd. 2.    Contract provisions.  The performance-based 
 contract with each intermediate care facility must include 
 provisions for: 

    (1) modifying payments when significant changes occur in 
 the needs of the consumers; 

    (2) monitoring service quality using performance indicators 
 that measure consumer outcomes; 

    (3) the establishment and use of continuous quality 
 improvement processes using the results attained through service 
 quality monitoring; 

    (4) the annual reporting of facility statistical 
 information on all supervisory personnel, direct care personnel, 
 specialized support personnel, hours, wages and benefits, 
 staff-to-consumer ratios, and staffing patterns; 

    (5) annual aggregate facility financial information or an 
 annual certified audited financial statement, including a 
 balance sheet and income and expense statements for each 
 facility, if a certified audit was prepared; and 

    (6) additional requirements and penalties for intermediate 
 care facilities not meeting the standards set forth in the 
 performance-based contract. 

    Subd. 3.    Payment rate provisions.  For rate years 
 beginning on or after October 1, 2000, within the limits of 
 appropriations specifically for this purpose, the commissioner 
 shall determine the total payment rate for each licensed and 
 certified intermediate care facility by indexing the total 
 payment rate in effect on September 30, 2000, for inflation.  
 The inflation factor to be used must be based on the change in 
 the Consumer Price Index-All Items, United States city average 
 (CPI-U) as forecasted by Data Resources, Inc. in the first 
 quarter of the calendar year during which the rate year begins.  
 The CPI-U forecasted index for total payment rates shall be 
 based on the 12-month period from the midpoint of the facility's 
 prior rate year to the midpoint of the rate year for which the 
 operating payment rate is being determined.  

    HIST: 1998 c 407 art 3 s 16