Four Care Centers Request Moratorium Exceptions Process Funding

Posted on December 31, 2018 by Jeff Bostic

The Minnesota Department of Health (MDH) received proposals from four care centers – all LeadingAge Minnesota members -- for funding through the moratorium exceptions process. 

The projects, which account for a total of roughly $87 million in much needed construction, are: Chosen Valley Care Center (Chatfield), Lakeview Methodist Health Care Center (Fairmont), Ebenezer Care Center (Minneapolis) and CentraCare Health Koronis Manor (Paynesville). 

The state has not yet calculated the annual state cost of completing all the projects, but with a general fund balance of almost $1 million available there is a good chance that all four projects can be funded in this round. A review panel will hear the proposals in February. MDH will make a final decision on them by the end of March.  

Property Payment System Update

You may also be wondering about the status of potential changes to the property payment system that was included in the 2015 payment reform legislation. That legislation called for appraisals of all facilities followed by a report from the Minnesota Department of Human Services (DHS) to the Legislature with recommendations for how to implement a new payment system that bases rates on the current depreciated value of each care center.  

DHS submitted a report last year that provided only general guidance on how to proceed to update the property system using the appraisal information. The Long-Term Care Imperative has been working with DHS on developing the details of transition to a new system, and we will be bringing forward legislation to do that in the 2019 legislative session. If that legislation is approved this year, the earliest care center provider would see a rate impact from the new system is Jan.1, 2020. 

We will be providing a more detailed update on the property system proposal at January District Meetings, so make plans now to attend one of the seven upcoming meetings around the state.