Nursing home executives ask for backup funding plans in lieu of total reform

A steady stream of nursing home executives from across the state pleaded with the House Aging and Long-Term Care Policy Committee Wednesday for higher reimbursement rates in order to stay in business.

Rep. Joe Schomacker

In spite of their suggested legislative solutions, proponents said they also support HF316, a bill sponsored by Committee Chair Rep. Joe Schomacker (R-Luverne) that would overhaul the reimbursement pay formula to nursing homes.

So why did they bring legislators their own individual proposals?

“I hope that HF316 passes. If it doesn’t, they’re taking care of their highest priority,” said Rep. Bob Gunther (R-Fairmont).

One reason given for Schomacker’s bill being at risk is the proposed cost of the overall reform initiatives it contains. According to SF273, a companion sponsored by Sen. Tony Lourey (DFL-Kerrick), the estimated cost, as introduced, would be $196.23 million in the 2016-17 biennium and $361.32 million the following biennium.

“If [HF316] happens to be too rich for some people’s blood around here, I have an alternative,” said Rep. Dean Urdahl (R-Grove City), who sponsors HF232, which would increase payments to 147 nursing homes who are the “lowest of the low” in reimbursed rates. The companion, SF1112, sponsored by Sen. Kent Eken (DFL-Twin Valley) awaits action by the Senate Health, Human Services and Housing Committee.

Eight other legislators presented bills about specific nursing homes. The aging committee approved all of them in a single vote and sent them to the House Health and Human Services Finance Committee.

Nursing home representatives said they are operating at losses and are being subsidized by their adjoining hospitals. Others have reduced the number of clients they serve in order to reduce costs. Some said they reduced the number of clients because they can’t retain staff, whose salaries aren’t competitive with hospitals, state veterans homes and low-overhead grocery stores.

“I hope you’re fighting for the money, because we have this surplus. I expect you to sharpen your elbows and continue to fight for this because the staffing just continues to be a big problem,” Rep. Leon Lillie (DFL-North St. Paul) told Schomacker.

Rep. Jack Considine Jr. (DFL-Mankato) and other DFLers were troubled by the piecemeal approach. “I think we need to make a commitment to the chair’s bill,” he said.