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Nursing Home Funding; Finally Secured Thanks to GOP Persistence

Wednesday, August 23, 2023

Nursing Home Funding; Finally Secured Thanks to GOP Persistence

Nursing homes have been struggling significantly as a result of the pandemic-induced worker shortages and delays that were exacerbated in the reimbursement formula by as much as two years. Massive increases in costs have put these care facilities on the brink of closure and overextended with lines of credit just to keep their doors open. These facilities care for our most vulnerable family, friends, and neighbors giving them a quality of life they may not be able to achieve without the assistance provided by these caregivers.

Over the past three years we’ve seen inflation hit record numbers that affected items like groceries, cleaning supplies, and household toiletries most of all. In facilities that go through exponentially more of these items compared to the average household, the added costs have made the state reimbursement formula insufficient to keep nursing homes cost-effective. This issue has been exacerbated by the increased delays in state reimbursements that have gotten has high as 18 to 24 months. Meaning nursing homes are operating with their current costs while being paid based on their costs that are as much as two years delayed.

To address these discrepancies that have put nursing homes across the state on the brink of closure House Republicans made it a top priority this session to ensure that these care facilities would continue to operate. Multiple urgencies for legislation and amendments on the floor were brought forward by caucus members to secure this funding and were voted down by the majority. This persisted up until the end of the 2023 legislative session when negotiations on the final budget allowed for caucus leadership to secure $300 million in emergency funding for these care facilities.

Here in District 11B three facilities will be receiving nearly $1.4 million in funding over the next two years. These include St. Clare Living Community in Mora, The Estates at Rush City, and Sandstone Health Care Center with half of the funding being sent on August 1st of this year and the rest being sent on August 1st of 2024. These payments will help to keep the doors open for those who need this level of care.

Care providers across Minnesota will see relief and operational security thanks to the work of Republicans in the Minnesota House. They will have the resources needed to adjust to a changing labor market and to address the unpredictable changes in many of their expenses. Ultimately this means our most vulnerable will continue to have access to the support that they need to provide the best possible quality of life.