Legislative Update College of Medicine Advocacy Subcommittee 1.
ADVOCACY UPDATE
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ADVOCACY UPDATE. March 2008. WORD GAMES. “ Increase N.F. Rates; Eliminate Rebasing” “Delay Long-Term Care COLA until FY 2010” This proposal delays a 2% rate increase for all long-term care providers, excluding nursing facilities. ECONOMIC IMPACT OF LTC FACILITIES: JOBS CREATED. - PowerPoint PPT Presentation
Transcript of ADVOCACY UPDATE
ADVOCACY UPDATE
March 2008
WORD GAMES
• “ Increase N.F. Rates; Eliminate Rebasing”
• “Delay Long-Term Care COLA until FY 2010”– This proposal delays a 2% rate increase for all
long-term care providers, excluding nursing facilities
ECONOMIC IMPACT OF LTC FACILITIES: JOBS CREATED
Source: DHS Transform 2010 Economic Impact Study, with data from DEED and MDH
Minnesota's Nursing & Residential Care Facilities Support Nearly
120,000 Jobs.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Employment
ripple effect
direct impact
total impact
ECONOMIC IMPACT OF LTC FACILITIES: STATE ECONOMY
Source: DHS Transform 2010 Economic Impact Study, with data from DEED and MDH
Wages from Minnesota's Nursing & Residential Care Facilities Contribute
Over $2.6 Billion Annually.
$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
Wages
do
llars
(b
illi
on
s)
ripple effect
direct impact
total impact
PERCENT OF CARE CENTERS IN FINANCIAL CRISIS
Source: Imperative Nursing Facility Survey Prepared by LarsonAllen
Legend=<25%
=26%-35%=35%-45%=>45%
East Central 37.0%
Metro 25.3%
Northeast 40.0%
Northwest 58.8%
Southeast 29.8%Southwest 20.5%
West Central 28.0%
(Operating Margin of -5% or worse)
30% of Facilities are in Crisis, Same High
Level as 2006
MORE THAN 24,000 JOBS AT RISK DUE TO FINANCIAL CRISIS
Jobs at Risk: 7,963
Beds: 13,684
Jobs at Risk: 2,582
Beds: 2,806
Jobs at Risk: 1,932
Beds: 3,000
Jobs at Risk: 1,923
Beds: 4,078 Jobs at Risk: 3,807
Beds: 5,554
Jobs at Risk: 2,184
Beds: 1,615
Jobs at Risk: 4,086
Beds: 4,801
CARE CENTER RATES NOT KEEPING PACE WITH INFLATION
Source: CMS, DHS
14.6%
2.0%
6.6%
0.0%
2.3%2.3%0.0%
3.1%2.6% 3.0% 3.1%2.8%
0%
5%
10%
15%
2003 2004 2005 2006 2007 TotalPeriod
Avg Nursing Home Rate Increase SNF Market Basket Inflation
7%
ELDERLY WAIVER RATES NOT KEEPING PACE WITH INFLATION
Source: CMS, DHS
19.0%
2.0%4.6%
-1.0%
2.3%2.3%
-1.0%
4.0%3.6% 3.6% 4.1%3.7%
-5%
0%
5%
10%
15%
20%
2003 2004 2005 2006 2007 TotalPeriod
Avg Elderly Waiver Rate Increase Home Health Market Basket Inflation
12.4%
MEDICAID CARE CENTER FUNDING SHORTFALL
$13.10
$19.98
$13.02
$24.96
$0
$5
$10
$15
$20
$25
$30
2006 2007
National Average MinnesotaSource: BDO Seidman Medicaid Shortfalls Study
Minnesota is 4th Largest Gap of 38 States in 2007
STATE FUNDS SET ASIDE FOR CARE CENTERS NOT USED
$444.8
$427.7$432.4
$424.9$425.2
$411.4 $409.9
$401.6
$400
$410
$420
$430
$440
$450
$ in
Mil
lio
ns
2004 2005 2006 2007
State Fiscal Year
Funds Appropriated for NFs Funds Actually Spent on NFs
Source: Department of Human Services
Almost $47M in NF Funding was Unused in Last Four Years
