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SF2750 (Legislative Session 94 (2025-2026))

Nursing facility payment rates terminology modifications

Related bill: HF2159

AI Generated Summary

Purpose of the Bill

This bill aims to update the terminology in Minnesota's laws related to nursing facility payment rates, specifically focusing on performance-based incentive payments. The goal is to refine the existing framework to better align with policy objectives and funding capabilities.

Main Provisions

  • Performance-Based Incentive Payments: The bill focuses on enhancing the model for incentive payments given to nursing facilities. These payments can be up to 5% more than a facility's regular operating payment rate, rewarding facilities for achieving specific positive outcomes.

  • Criteria for Incentive Payments: The commissioner of human services is tasked with creating a system that selects and supports proposals from facilities. Proposals are evaluated based on how well they meet state policy objectives, and contracts between the facilities and the commissioner will outline payment levels for different performance tiers.

  • Funding Limits: The amount of incentive payments and the number of contracts issued are limited to what can be funded with the appropriated budget.

Significant Changes to Existing Law

  • Specified Outcomes for Payments: The bill includes detailed outcomes that facilities need to meet to qualify for these payments. These outcomes include successfully transitioning residents back to their homes or community alternatives, adopting new technologies, improving quality as indicated in the Minnesota Nursing Home Report Card, and reducing acute care costs. Facilities may also propose other desirable outcomes that the commissioner may approve.

  • Timelimited Rate Adjustments: Payments are designed as temporary rate increases tied to specific performance metrics, which are now included in the external fixed costs payment rate.

Relevant Terms

  • Nursing facility
  • Payment rates
  • Performance-based incentives
  • State policy objectives
  • Community-based alternatives
  • Minnesota Nursing Home Report Card

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toHuman Services
March 26, 2025SenateFloorActionComm report: To pass as amended
March 26, 2025SenateFloorActionSecond reading

Citations

 
[
  {
    "analysis": {
      "added": [
        "Specified performance outcomes for incentive payments."
      ],
      "removed": [
        ""
      ],
      "summary": "The bill relates to the adjustment of incentive payments under section 256R.38, which are included in the external fixed costs payment rate under section 256R.25.",
      "modified": [
        "Incentive payments adjusted to consider performance outcomes."
      ]
    },
    "citation": "256R.25",
    "subdivision": ""
  }
]

Sponsors