We understand there is a sense of frustration building amongst some of our workforce as the economic recovery is slow to reach their pocketbooks, and the state’s budget has been balanced over the past few years at the expense of workers’ wages.  We also understand that we have to periodically remind our staff about why they haven’t received wage increases and why, in some cases, they may have actually received wage or benefit decreases.  Because many of our unionized nursing facilities are currently entering their fall contract negotiations, we wanted to provide you with talking points about the budgetary realities to use should there be any demonstrations and/or questions; and some reminder guidance about labor relations.  We will be posting two documents on our website:
1. Summary document on Labor-Relations issues (to be posted 10/1/2010)
2. Talking Points for use in press/employee/other releases (posted 9/30/2010).

Here are a few examples from our talking points document:

• Minnesota has not set Medicaid nursing home payment rates according to actual and allowable costs since 1995.  The gap between the rates paid by Medicaid for nursing home residents and the actual cost of caring for nursing home residents is over $20/per day, per resident.  Rate equalization means private paying individuals also have the same gap between cost of care and paying for care.  Regulatory standards as they are allow just one area to make up the gap – cuts to caregivers’ wages and benefits.

• Past years of budget deficits have resulted in cuts or frozen rates to older adult services.  In order to keep doors open, facilities have gotten by through wage and benefit cuts to its employees.  There is no “fat” left to cut.  57 nursing facilities in towns throughout Minnesota have already closed since 2000.  We already receive $20 per day less than the cost of providing care.

• Nursing homes have limited options to increase income or reduce their budgets; the only area left to make adjustments are employees’ wages and benefits – making caregivers the ones who ultimately pay the price for the rate freezes or cuts.

• Unlike other service professions, the State of Minnesota sets the rate a nursing facility can charge for care.  Currently, that rate is $20/per day, per resident less than the cost of providing care for a Medicaid resident.  And under Minnesota’s unique policy of rate equalization, private-paying residents pay the same rate as Medicaid residents, which results in yet another loss of $20/per day, per resident.

Toby Pearson
952.851.2480
tpearson@careproviders.org

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