Minnesota Nursing Homes Get Lifeline From State
DULUTH, MINN — On the last day of the Minnesota legislative session, the leaders of both parties got together and worked out an agreement to provide $300 million to help nursing homes across the state. State Representative Natalie Zeleznikar, talked with FOX 21 about the agreement that likely saved many nursing homes.
The first-term representative knows the issues, she’d been a nursing home administrator for 30 years. Helping nursing homes was a major reason she decided to run for office. Zeleznikar said, “I’m happy because it saved Minnesota nursing homes. And every nursing home got $235,000. Every nursing home in rural Minnesota, greater Minnesota, large Minnesota nursing homes, and homes in the Minnesota suburbs. Everybody!”
According to a study done by a group known as Long-term Imperative, of the approximately 300 nursing homes in Minnesota, 15 percent of them had exhausted their financial reserve and 41 are considering closing.
The $300 million in the bonding bill provides a minimum of $225 thousand for all nursing homes. That money was received earlier this month. Next August an additional $250 thousand will go to each home. These grants are designed to help stabilize the homes.
A major issue for nursing homes is how the Department of Human Services determines the amount that it pays to the facilities.
“The state of Minnesota does all the audits for financials to determine the rates for the future rate structure, and they were behind,” said Zeleznikar. “So I found out that nursing homes were operating with rates from 2020, the majority of nursing homes, it‘s 2023 and they were operating out of reimbursements for actual costs incurred from 2020.”
After Covid, the supply chain issues that caused a massive increase in the cost of food and other necessities, as well as the difficulty of finding and retaining employees, were stressing the industry to the breaking point. The nursing homes needed an influx of cash.
When legislators return in February, they will still be faced with finding ways to ensure the health of the nursing home industry going forward.
