SF2750

Purpose of the Bill

The bill aims to amend existing laws related to the payment rates for nursing facilities in Minnesota. It seeks to correct and update the terminology and guidelines for determining payment rates and adjustments that nursing facilities can receive based on performance and closures.

Main Provisions

1. Performance-Based Incentive Payments:

   • The bill allows for additional payments to nursing facilities, up to 5% above their standard operating payment rate. These payments are designed to reward facilities that meet specific outcomes and objectives as outlined in a contract.
   • The commissioner will select proposals that best meet state policy objectives, such as successful resident discharge to homes, adoption of new technology, improvements in quality as per the Minnesota Nursing Home Report Card, and reduction in acute care costs.
   • Payments will be temporary rate adjustments included in the nursing facility's external fixed costs payment rate.

2. Planned Closure Rate Adjustment:

   • This section outlines how the payment adjustments for nursing facilities that are planning closures will be calculated.
   • The calculation involves determining the net reduction of beds and adjusting the payment rate accordingly.
   • The bill specifies that closure rate adjustments will become part of the facility's payment rate and can be reassigned to another facility under the same ownership within three years of its effective date.

Significant Changes

• Terminology and Calculation Updates: The bill updates the language used in statutes related to payment rate adjustments and incentives. It also clarifies the formulas and methodologies for calculating these adjustments.
• Flexibility in Rate Adjustments: Facilities receiving closure rate adjustments gain the flexibility to reassign these adjustments to other facilities they own within a set period.

Relevant Terms

• Nursing facility
• Payment rates
• Incentive payments
• Closure rate adjustment
• External fixed costs
• Minnesota Nursing Home Report Card
• Acute care costs