A week after the Minnesota Nursing Home Workforce Standards Board approved a $24 minimum wage for CNAs, a group of elected lawmakers fell short in their attempt to create exceptions and funding for “distressed” nursing homes.
The Minnesota House passed its version of a human services supplemental budget bill Monday, following hours of debate over the provisions of the bill — such as six amendments intended to bolster struggling long-term care facilities in the state.
While the House bill still includes $7.69 million in loans for long-term care services and provides more flexibility to the scope of licensed practical nurses in the assisted living setting, none of the six amendments supporting long-term care providers were adopted.
Providers reacted with some disappointment to the house bill’s final form. While appreciative of remaining provisions meant to support care providers, the bill missed important opportunities to support the sector, said Kari Thurlow, president and CEO of LeadingAge Minnesota.
“The Minnesota House health and human services bill is a case of taking one step forward and two steps back as Minnesota prepares to meet the needs of our aging population,” she told McKnight’s Long-Term Care News Tuesday. “We are deeply disappointed that the Minnesota House missed an opportunity to address a fiscal cliff that all Minnesota nursing homes will face at the end of this year when the temporary $12.35 resident rate add-on will expire.”
‘A perfect storm’
One proposed amendment to the budget bill would have extended that temporary $12.35 rate per resident per day through June 2025. Other provisions would have increased the loan funding available to long-term care providers and allowed distressed nursing homes to receive an exemption from the workforce board’s new minimum wage requirements.
A nursing home is considered “distressed” in Minnesota if it can demonstrate that its income does not cover operating expenses, it is at risk of closure due to loans or vendor costs, and if additional funding is necessary to preserve care access for high-acuity residents. The distressed status also makes such a facility eligible for certain state loans — which would have been expanded under the defeated amendments.
Thurlow said that a “perfect storm” is forming for providers, between the expiration of the temporary rate add on and the workforce board’s new minimum wage rules.
“LeadingAge Minnesota strongly believes that the solution to these issues is a commitment by state lawmakers to pass permanent funding to boost workers’ wages,” Thurlow said. “Unfortunately, the modest 2024 supplemental budget delays critical investments for our essential caregivers, and instead doubles down on unfunded mandates.”
The bill heads to the state Senate floor next, where differences between the versions passed by each chamber of the Legislature will need to be worked out.
