This Minnesota House bill (H.F. No. 2159), authored by Representative Schomacker, seeks to amend existing statutes related to nursing facility payment rates. Specifically, it makes corrections to terminology in Minnesota Statutes 2024, Sections 256R.38 and 256R.40, which pertain to performance-based incentive payments and planned closure rate adjustments.

Key provisions of the bill include:

• Performance-Based Incentive Payments (Section 256R.38): The commissioner may provide nursing facilities with incentive payments of up to 5% above their standard operating payment rate for achieving specific performance outcomes. These outcomes include:

  • Successful discharge or diversion of residents to their prior homes or community-based alternatives.
  • Adoption of technology to improve efficiency and quality.
  • Improved quality scores in the Minnesota Nursing Home Report Card.
  • Reduction in acute care costs.
  • Additional facility-proposed outcomes deemed desirable by the commissioner.
  • Payments will be time-limited rate adjustments incorporated into a facility’s external fixed cost payment rate.

• Planned Closure Rate Adjustment (Section 256R.40, Subd. 5):

  • Establishes a formula to calculate payment adjustments for facilities that reduce bed capacity.
  • The adjustment is determined based on the net reduction of nursing facility beds, with funds allocated per bed per year.
  • The adjustment becomes effective from the nearest January or July following a facility’s closure.
  • Facilities receiving the adjustment may transfer it to another commonly owned facility within three years.
  • If the per-bed dollar amount increases in the future, previously granted adjustments will be recalculated and applied retroactively.

The bill appears to clarify and refine payment methodologies for nursing facilities in Minnesota to ensure incentives align with policy objectives, including quality improvement and cost efficiency.