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Nursing home consolidation funding, Red Wing project modified

The funding mechanism for the consolidation of various nursing homes around the state would be modified under a bill passed 126-0 by the House Thursday.

Sponsored by Rep. Tim Kelly (R-Red Wing), HF2607 would shift the reimbursement rate increase implemented to fund nursing facility consolidation projects from the property rate reimbursement to the external fixed cost rate reimbursements. The bill is revenue neutral, only shifting where the increase is implemented but not how much is increased.

House Floor session - part 2 5/12/16

The bill now goes to the Senate, where Sen. Matt Schmit (DFL-Red Wing) is the sponsor.

The change is intended to keep funding intact even with changes to nursing home funding rules and possible reforms of nursing facility property rate reimbursements being considered this session.

Kelly said the Red Wing consolidation project that spawned the original laws – the combining of an 84-bed facility and a 64-bed facility into one newly renovated 64-bed facility – is still ongoing. The changes would prevent disruption to funding of this project.

The bill would also tweak the project so that it results in the delicensing of 85 beds, instead of the previous language’s delicensing of 69 beds. 


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