Moratorium Exceptions Process Application Posted

Posted on July 18, 2021 by Jeff Bostic

The Minnesota Department of Health (MDH) recently posted the application materials for a new round of the nursing facility moratorium exceptions process on the MDH website. Care centers interested in applying for approval to fund a construction project will need to complete all of the required application materials and return them to MDH by March 17, 2022.

We are pleased that the legislature approved ongoing funding for the moratorium exceptions program in the last session and at a level that will address some of the significant construction needs that have been building up for years.  The current round will distribute slightly over $4 million in state Medicaid funds. Because the state budgets for the program only the first year of state cost is applied against the $4 million, it will support total construction costs of well over $200 million.

Following a presentation to a review committee shortly after the application deadline, MDH will have a list of approved projects by June 22, 2022. Under the nursing facility property rate system, a moratorium exception approval allows providers to calculate their entire property rate based on a rental value formula adopted by the 2019 Legislature. That formula is more straightforward and tends to produce a better rate than the old system, so the moratorium exceptions process is a key tool for upgrading and replacing care centers across the state.