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State Representative Patti Fritz

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100 Rev. Dr. Martin Luther King Jr. Blvd.
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Posted: 2007-04-20 00:00:00
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Press/News Releases

FRITZ AMENDMENT BRINGS $75 MILLION TO RURAL NURSING HOMES


St. Paul, MN – State Rep. Patti Fritz (DFL-Faribault) was successful in getting an amendment to the House Health Care and Human Services Bill passed today that will significantly increase funding for rural nursing homes.
"In greater Minnesota, local nursing homes are a cornerstone of our communities," said Fritz. "Not only do they enable us to keep our friends and family close to home, they also provide good jobs.
It's time to recognize that salaries, utilities, supplies and maintenance cost just as much in rural Minnesota as they do in the metro area."
The amendment addresses the disparity in reimbursement rates between metro nursing homes and rural nursing homes. This gap in funding has not been adjusted since 1983, when a metro, rural and deep rural payment structure was created. As the result, metro nursing home reimbursement rates have continued to rise, while rural homes continued to receive less and less.
Another provision in the bill, also authored by Fritz, begins the long overdue process of reimbursing rural nursing homes for their actual costs. The two proposals will bring an additional $75 million to rural nursing homes in the 2010/2011 biennium.
To address the immediate financial concerns of many nursing homes, Rep. Al Doty (DFL-Royalton) offered an amendment that provides $2 million in funding for nursing homes that are facing severe financial strain. The facilities would fill out an application to apply for the money.
"There are nursing homes that can't wait until 2010 for more funding, including two in my district," said Doty. "This short-term answer could very well prevent some if them from closing."
Fritz said that over the past few years, the state has backed away from its support for these critical long-term care facilities. First, the state legislature froze the payment rates to nursing homes because of the budget deficit. In addition, another $32 million was trimmed from payments nursing homes traditionally received.
The result has been serious financial strain. According to research by the Long-Term Care Coalition, 26 percent of Minnesota's nursing homes and long-term care facilities are at risk of closure and operating with a margin of –5 percent or less. In some parts of the state, the rate is even higher, especially in rural parts of the state. If state support were to remain the same, nearly half of the state's long-term care facilities would go under by the year 2015.
"We desperately need all of our nursing homes, especially with our rapidly aging population," said Fritz. "I'm hopeful this legislation will help stop some of the bleeding in rural nursing homes."
The Health Care Bill also includes $393 million in additional funding for statewide nursing homes and long-term care providers over the next four years. Seventy-five percent of the funding increase must be used to increase the wages and benefits for workers in those facilities.
"The men and women who care for our loved ones residing in nursing homes are compassionate caretakers who recognize the value and importance of helping our seniors live out their lives with dignity and self-respect," said Fritz. "We need to keep them on the job without asking them to sacrifice their own opportunity to make a good living."

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