Senate Republicans are sharing the details of the $300 million deal to help nursing homes struck over the weekend. The agreement will include direct grants, facility rate increases, and a workforce incentive fund that adds up to about $1.1 million for every nursing home in the state. These new funds are in addition to the $100 million in loans available in the Human Services bill passed last week.
“Nursing Homes deserved so much more than what Democrats provided this year,” Sen. Jordan Rasmusson(R-Fergus Falls) said. Rasmusson worked with Democrats from the House and Governor’s office to work out the details on the plan. “Were it not for our resolve, Minnesota could have lost up to 40 nursing homes in the coming year. This plan will give them a lifeline to stay open and continue to provide this invaluable care for our loved ones,” he said.
Nursing Facility Grants totaling $173.5 million will be split into two payments in August 2023 and August 2024. Each nursing home will receive at least $225,000, plus additional funds based on active beds for every nursing home in the state, an average 50-bed facility could see $465,000 in grant funding. The grants can be used for various fiscal management strategies to improve the financial health of nursing homes. Unlike loans in the Human Service budget, these grants will not need to be repaid, making their impact much more meaningful for nursing homes.
Staffing concerns continue to be a major challenge for nursing homes. $51.5 million in state money in additional to federal funds will enable a temporary $12.32 daily rate add-on for 18 months. Nursing home administrators say that this could translate into a pay raise of about $1 per hour for nursing home staff. The remaining funds from the $300 million are put into a Workforce Incentive Fund (WIF) that facilities can use for hiring and retention bonuses, employee-owned benefits, and employee contributions to a 410k, along with professional development, childcare, meals, transportation, and housing needs of employees. The WIF caps out at $3000 per worker, per year and is available until funds are spent or July 2029.
According to Long-Term Care Imperative, a collaboration of aging services providers, 15% of nursing homes statewide have completely exhausted their financial reserves and 10% are considering closing. In Greater Minnesota, 17% have no financial reserve and 12% are considering closures. With about 350 nursing homes in the state, that puts 60 nursing homes without reserves, and 41 considering closure.
“Ultimately, this is the right thing to do, and it shouldn’t have required a strong negotiation to get it done,” Senate Minority Leader Mark Johnson said. “Senate Republicans have been fighting for nursing homes since day one, and we’re glad Democrats finally joined us at the table to take care of those who care for our most vulnerable adults and seniors.”