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MDH LTC Issues Committee

Legislative UpdateJuly 24, 2007

Bob Held

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Legislative Update

• COLA• Quality Add-On• Rebasing• Case Mix Indices• Moratorium Exception funding• Sprinklers • Technical and limited applicability

provisions

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COLA 2007

• 1.87% effective 10/1/2007

• 75% for compensation related costs

• 2/3 of that for equal percent wage increase

• Application required

• Union issues

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Quality Add-On

• Up to 0.3% effective 10/1/2007• Average will be 0.13%• Measures to be used

– Quality of life – 20%– MN quality indicators – 35%– Direct care staffing level – 10%– Direct care staff retention – 20%– Pool usage – 5%– MDH certification findings – 10%

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Moratorium Exceptions

• Authority to approve projects with annual MA cost up to $3 million

• Additional money available from cancelled or expired projects approved earlier

• New criteria – demonstrated continuing need for nursing home in community

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Rebasing

• Categories – operating, external fixed, property• Cost based for operating• Limits

– Care related – 120% of median for peer group and facility type

– Other operating – 105% of median for peer group

• Efficiency incentive• Phase-in of operating over 8 years• Hold harmless• Quality

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Case Mix Indices

• Staff time measurement study completed in about 2004

• How to implement?– Budget neutral– Hold harmless

• Incorporated into rebasing

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Sprinklers

• $2.5 million appropriated

• Sprinkler system only

• Applications were due July 2

• Equal discount if cost of requests exceeds money available

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Technical and limited applicability provisions

• COLA 06-07

• PERA

• Property

• LTC Consultation

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Questions?

Robert HeldNursing Facility Rates and Policy Division

MN Department of Human ServicesPO Box 64973

St. Paul MN 55164-0973

Located at 540 Cedar St. in downtown St. Paul

Voice 651-431-2261 Fax 651-431-7415 robert.held@state.mn.us