Care Providers of Minnesota has updated the Microsoft Excel® spreadsheet for member nursing facilities to estimate the impact of the cuts contained in Governor Mark Dayton’s revised 2012-2013 budget on their nursing facility. Shortly after the improved State Budget Forecast was announced on February 28, 2011, Governor Dayton announced several budget cut buy-backs.

The Updated Nursing Facility Budget Impact Calculator has been updated with areas to be “bought back” as we currently understand them. The Governor’s changes for nursing facilities include:

• The Governor now proposes a reduction of 10% of the operating payment rates paid for the lowest case mix categories (PA1 and BC1) of the nursing facility case mix classification system instead of the 25% as initially proposed.
• The governor now proposes to reduce nursing facility operating rates by 1% instead of the 2% initially proposed.
• The proposal to reduce the enhanced nursing facility rates for the first 30 days from 20% to 10% is now fully restored to 20%.

To access the Updated Nursing Facility Budget Impact Calculator and other information, click on the link next to the capitol photo on our main page; login with your username and password (because this is just for members) and you’ll be at the advocacy page.

To determine the impact of the cuts on your nursing facility, the following information is needed:

• 9-30-2010 year-ending census by RUG-34 classification for both Medicaid and private pay
• Your 10-1-2010 nursing facility rate notice
• If you have the Single-room election, you will need the current number of Medicaid clients with medical necessity that are residing in a single room.

The calculator does not estimate the impact of the following cuts:

• Bed hold payments are reduced from 60% of the established rate to 30%, and the eligibility test is increased from 93% occupancy to 96%.
• New planned closure rate adjustments are eliminated.
• New single bed incentives are eliminated.

Please contact Todd Bergstrom at the Association office if you have any questions.

Todd Bergstrom
952.851.2486
tbergstrom@careproviders.org

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