Friday, Jan. 1, 2016, a new law changing the way the nursing homes across Minnesota are reimbursed takes effect. The State reverted back to a cost reimbursement system, similar to the one that was in effect 12 years ago. A cost reimbursement system is one in which the home incurs the expense, then later it is included in the daily rate. This system will reimburse the nursing home in 2016 for the pay and benefits of staff, and other expenses of providing care (food, supplies, etc.) that was spent in 2014.
More importantly, the new system sets limits based on quality. By comparing quality in all nursing homes in Minnesota, the homes with higher quality scores have higher limits. Nursing homes with lower quality scores now have an incentive to increase the quality of care they provide. This system will increase quality in ALL nursing homes.
The past number of years haven?Äôt been very kind to nursing homes, many, many closed because of financial pressures. There were numerous years in a row the State provided no increase for staff wages/benefits. Workers in long-term care did their part to help the State?Äôs budget crisis, they went years without wage increases.
Over time, this system will increase quality of care, result in equitable wages/benefits for staff, and give family members a piece of mind that their loved one is in good hands.
Fred Struzyk Administrator
Hilltop Health Care Center
Garden View at Hilltop