Friends and neighbors –
Nursing homes across the state are in crisis. About 50 of them have closed in the last few years, and the ones that are still hanging on are doing so by the skin of their teeth. They have been begging us for assistance to stay afloat, retain staff, and keep taking care of our vulnerable loved ones. Many of them will not make it much longer.
Last year, Senate Republicans proposed infusing nursing homes and long-term care facilities with $1 billion to address this crisis but were met with resistance from House Democrats and Gov. Walz.
Unfortunately, that resistance continued this year with Democrats in control of both chambers of the Legislature and the governor’s office. Just days ago the Senate approved a Democrat human services bill that provided a mere $100 million in loans for nursing homes. It was completely inadequate.
On the final weekend of this year’s session, Republicans successfully brokered a deal to secure an additional $300 million to address Minnesota’s nursing home crisis. 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.
The need for nursing homes is greater than ever before. It’s urgent that we provide increased funding and support to prevent further shutdowns. 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.
Unfortunately, Democrats opposed our efforts throughout the entire session, but I’m proud that the Republicans stood firm and successfully secured this historic funding. It will serve as a much-needed lifeline for these struggling facilities.
HOW IT WILL WORK:
- 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 addition 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.
Contact me
I love hearing your feedback. If you have any questions or comments about the issues we are working on, please contact me anytime. My email is sen.glenn.gruenhagen@senate.mn, or you can call me at 651-296-4131.
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It is a privilege to serve you. God Bless.