Legislators in Illinois and Minnesota recently have approved broad funding increases for skilled nursing facilities in their states.
A Minnesota budget proposal currently in the Human Services Reform Finance and Policy Committee includes $1.3 billion that could help Minnesota nursing homes as well as assisted living communities address critical staffing shortages, estimated to be 23,000 open caregiver positions.
The proposal would allocate $1 billion to increase wages in the state’s long-term care, personal care and disability waiver rate service industries. Another $322 million would be dedicated to recruiting more direct support professionals and personal care assistants at long-term care facilities, groups homes, and home and direct care providers. Under this proposal, nursing homes and “senior facilities” would receive $358 million, and staff members could get a $2 an hour raise, according to a press release from the Minnesota State Republican Caucus.
“This funding will help ensure nursing homes, long- term care facilities and group homes have resources available to provide the staff necessary to care for senior citizens and Minnesotans with disabilities,” state Senate Majority Leader Jeremy Miller (R) stated.
Patti Cullen, president and CEO of Care Providers of Minnesota, the American Health Care Association / National Center for Assisted Living state affiliate, told the McKnight’s Business Daily that the organization offered testimony to the committee. The proposal, she added, demonstrates that legislators “heard our cries for help and responded with sustainable long term investments and structural changes for funding long-term care.”
LeadingAge Minnesota President and CEO Kari Thurlow, however, previously told McKnight’s that although the budget target is “remarkable,” it won’t be enough to help fill the 20% of positions that are vacant across the state.
“The Senate’s proposal is an important step forward, but budget conversations are far from over,” she told the McKnight’s Business Daily on Friday. “Unfortunately, the House and the Governor have next to nothing in their budgets to permanently increase wages for caregivers in our sector. One-time measures will do very little to fill the 23,000 open caregiver positions across the state.”
In Illinois, legislators on Thursday unanimously approved funding increases and a new pay scale for certified nursing assistants based on their tenure and job level.
“We are both humbled and thrilled to reach an agreement after almost two years of discussions and negotiations,” Angela Schnepf, president and CEO of LeadingAge Illinois, told the McKnight’s Business Daily. “Our goal here is to improve the care of the residents of Illinois by having a Medicaid system that incentivizes staffing and outcomes while strengthening our workforce. This compromise legislation does just that.”
According to the Chicago Tribune, the $2.5 billion in annual nursing home funding by the state would increase by approximately $700 million, with $100 million from the state’s general revenue fund and the rest from federal Medicaid and local nursing home assessments, which by law are not supposed to be passed on to residents. The funding pays for the care of approximately 70% of the state’s 45,000 residents in skilled nursing facilities.
According to Schnepff, most of the funding increases are “tied to improved staffing and resident outcomes with transparency and accountability.” She pointed out that staffing incentives increase by $290 million to $350 million. The new staffing component has accountability to incentivize and reward improved staffing based on the care needs of the resident. The current $65 million for staffing has no requirements or accountability.
The legislation also includes:
- $70 million to establish a new quality program designed to evolve over time to promote continuous improvement.
- $83 million to directly compensation support certified nursing assistant workforce retention, tenure, promotion and training.
- $34 million to end the rural rate disparity.
- $52 million to transition the acuity rate system from Resource Utilization Groups IV to the Patient-Driven Payment Model.
- $170 million to increase base reimbursement and support nursing homes with higher levels of Medicaid beneficiaries.
Illinois Health Care Association Executive Director Matt Hartman told the McKnight’s Business Daily that he is “ecstatic” about the budget and the changes that replace “obsolete” methodology.
“This is more money than has ever been put into payment for these providers than ever before … It is timely,” he said.
