MINNEAPOLIS — Minnesota nursing homes will be receiving a $173 million boost in state aid to help deal with staffing shortages and continue to recover from the impact of the COVID pandemic.
Gov. Tim Walz and lawmakers dropped into Park River Estates Care Center in Coon Rapids Tuesday to highlight the bipartisan funding package that passed in the waning hours of the 2023 session. That nursing home is at full capacity with 99 residents but went through a lot of staffing upheaval during the pandemic.
"During three years of COVID, we compressed 10 years of employee turnover into three years," Steven Chies, the president of North Cities Health Care, told reporters.
"What we could've dealt with over a 10-year period of time, people retiring, going through that, people said, 'I'm done.'"
Each home across the state is expected to receive $225,000 in state aid in each of the next two years, plus an additional $12.35 per day per resident to help cover the lag in Medicaid reimbursements built into the state's system.
"The costs we're incurring today at the end of September 30, 2023 will not be recognized until January 1, 2025. We manage the best we can," Chies explained.
The aid package includes money to for incentive checks of $3,000 that nursing homes could pay to hire or retain employees. The eligibility guidelines are still being formulated, but the legislation anticipated anyone making $30 per hour or less could qualify.
DFL House Speaker Melissa Hortman said she heard from the former administrator of Park River Estates across 20 years about the need for more investment.
"His message was always that you need to treat these staff members like they matter, like the work they do matters."
There is also a new loan program to help nursing homes finance infrastructure improvements.
"The money is in there at zero percent interest," Sen. John Hoffman, a Champlin Democrat, told reporters.
"It's how you can buy some time to pay for your heating or air conditioning system, or whatever needs to be done."
The bills passed with broad support in the House and Senate, but the final dollar amount was higher after GOP lawmakers made it clear they'd hold off supporting the public works construction bonding bill if nursing homes didn't get more of the state's surplus.
"Minnesotans want us to work together to get things done," said Sen. Jim Abeler, an Anoka Republican who has specialized in human services and represents the area where Park River is located.
"They don't always understand the content. When they look at this they'll say, 'They worked together. They got something done.' If there's any message there, it's let's do that more."
Rep. Hortman said the budgeting process is complex with a lot of moving parts and competing interests, which is why different committees are often chasing the same pot of money.
"This was complex because all of these budget areas compete with each other. Kindergarten competes with highways, competes with nursing homes."
Rep. Mohamud Noor, the Minneapolis Democrat who chairs the House Human Services Finance Committee, said he was very excited that the aid package includes extra funding for critical access nursing facilities that play a crucial role in Greater Minnesota.
"This assistance will keep those homes from closing their doors!"
Gov. Walz said he expects the legislature to revisit the issue of long-term care in the 2024 session, which begins in February.
"The goal was to get us to a good start point, maybe raise that floor back up to a point where we can keep folks operating, but then come back with the hard discussions that need to happen."
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