minnesota’s seniors public policy issues
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Minnesota’s Seniors Public Policy Issues
Toby Pearson, Vice President of Advocacy, Care Providers of MinnesotaHeidi Holste, Director of Government Affairs, Care Providers of Minnesota
Kari Thurlow, Vice President of Advocacy, Aging Services of Minnesota
Crisis in Long Term Care
WHO WE ARE
The Long-Term Care Imperative is a collaboration of Aging Services of Minnesota and Care Providers of Minnesota, two of the state’s largest long-term care associations.
The Long-Term Care Imperative is committed to advancing a shared vision and future for older adult housing, health care and supportive services.
Supporting the Economy
Economic Impact of Long Term Care Facilities for Minnesota Prepared by the Lewin Group for AHCA-NCAL
LTC Supports $6.7 billion in Economic Activity
Powering the Workforce
Economic Impact of Long Term Care Facilities for Minnesota Prepared by the Lewin Group for AHCA-NCAL.
LTC Contribute to Approximately 112,600 Jobs
The Payment Gap
Information and data on Shortfalls in Medicaid funding based on Report Prepared by ELJAY, LLC FOR THE AMERICAN HEALTH CARE ASSOCIATION
Projected 2012 Nursing Facility Shortfall Between Medicaid Reimbursement and Allowable Medicaid Costs (Per Patient Day)
Minnesota vs. North Dakota
The annual cost of eliminating the shortfall to the State would be $78.5 million.
Nursing Facility Rebasing Unallottments, Suspensions, and Repeal (State Savings)
Source: Long Term Care Imperative 2013
% of Nursing Facilities at Risk of Closure(Operating Margins of -5% or Worse)
Legend=<15%
=15%-25%=25%-35%=>25%
East Central 29.4%
Metro 8.2%
Northeast 45.0%
Northwest 21.1%
Southeast 32.7%Southwest 23.7%
West Central 20.8%
Approximately 85 Nursing Facilities in MN are facing a financial crisis, placing more than 12,000 jobs at risk.
LTC Imperative 2011 Nursing Facility Financial Survey Prepared by CliftonLarsonAllen LLP
The Wage Gap
Sources: 2011 LTC Imperative Salary Survey and 2011 MN Health Care Cost Information Service Hospital Salary Data
Gap=$2.07 per hour or $4,306 per year
Gap=$5.79 per hour or $12,043 per year
Gap=$17.39 per hour or $36,171 per year
Gap=$15.77 per hour or $32,802 per year
Gap=$1.81 per hour or $3,765 per year
Gap=$6.13 per hour or $12,750 per year
Senior Living Workers Underpaid in the Marketplace
The Worker Gap
Source: Long Term Care Imperative 2013 Legislative Survey
Estimated Number of Selected Vacant FTE Positions in Minnesota’s Nursing Homes
The Worker Gap
Source: Long Term Care Imperative 2013 Legislative Survey
Vacant FTE Positions as a Percent of Budgeted Positions in Minnesota’s Nursing Homes
Losing Workers
Source: DHS Nursing Home Cost Reports (2011)
Employee Retention Percentage Declined in Care Centers
Staff Turnover
Source: American Health Care Association, LTC Trend Tracker
Nursing Home Costs Without the Elderly Waiver Program
Decrease due to increased
Federal Match
Source: DHS Spending Forecast November 2010
Elderly Waiver Program Saved State Up To $275 Million in 2010
Rate Changes
Assisted Living (Elderly Waiver Customized Living)
Nursing Facility
Source: LTC Imperative 2012
Nursing Facility and Elderly Waiver/Customized Living
• No base increase in last four years• In 2011, 70 low rate homes received increases of up to 2.45%• In 2012, 7 homes were designated “critical access” and received rate increases
2013 Legislative Proposal
Employees• 3% rate increases for nursing
facilities and EW is targeted to cover increases in compensation and other operating costs, including wages, benefits, recruitment and new staff costs. – 1% of these increases is to
address workforce needs such as staff training and retention.
Quality
• 2% rate increases for both nursing facilities and EW providers to develop new quality improvement efforts. – Nursing facility increase to
focus on Advancing Excellence– EW is targets toward
implementing a new quality improvement program.
Nursing Facility and Elderly Waiver Rate Increases
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