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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.

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ADVOCACY UPDATE

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  1. ADVOCACY UPDATE March 2008

  2. 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

  3. ECONOMIC IMPACT OF LTC FACILITIES: JOBS CREATED Source: DHS Transform 2010 Economic Impact Study, with data from DEED and MDH

  4. ECONOMIC IMPACT OF LTC FACILITIES: STATE ECONOMY Source: DHS Transform 2010 Economic Impact Study, with data from DEED and MDH

  5. PERCENT OF CARE CENTERS IN FINANCIAL CRISIS (Operating Margin of -5% or worse) Northwest 58.8% Northeast 40.0% West Central 28.0% Legend East Central 37.0% =<25% =26%-35% =35%-45% Metro 25.3% =>45% 30% of Facilities are in Crisis, Same High Level as 2006 Southwest 20.5% Southeast 29.8% Source: Imperative Nursing Facility Survey Prepared by LarsonAllen

  6. Jobs at Risk: 2,582 Beds: 2,806 MORE THAN 24,000 JOBS AT RISK DUE TO FINANCIAL CRISIS Jobs at Risk: 2,184 Beds: 1,615 Jobs at Risk: 4,086 Beds: 4,801 Jobs at Risk: 1,932 Beds: 3,000 Jobs at Risk: 7,963 Beds: 13,684 Jobs at Risk: 1,923 Beds: 4,078 Jobs at Risk: 3,807 Beds: 5,554

  7. CARE CENTER RATES NOT KEEPING PACE WITH INFLATION 7% Source: CMS, DHS

  8. ELDERLY WAIVER RATES NOT KEEPING PACE WITH INFLATION 12.4% Source: CMS, DHS

  9. MEDICAID CARE CENTER FUNDING SHORTFALL Minnesota is 4th Largest Gap of 38 States in 2007 Source: BDO Seidman Medicaid Shortfalls Study

  10. STATE FUNDS SET ASIDE FOR CARE CENTERS NOT USED Almost $47M in NF Funding was Unused in Last Four Years Source: Department of Human Services

  11. FOR FURTHER INFORMATION Gayle Kvenvold President & CEO gkvenvold@mhha.com 651-645-4545

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