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S.F. No. 626 - Modifying Nursing Facility Provisions
Author: Senator Julie A. Rosen
Prepared By: Joan White, Senate Counsel (651/296-3814)
Date: March 15, 2011

Article 1 - Nursing Facilities
Section 1 modifies the Natural Disaster; State Assistance chapter of law, specifically the section related to human services, by allowing the Commissioner of Health to approve the layaway status of nursing home beds in response to a natural disaster.
Section 2 modifies the exceptions to the moratorium on certification of nursing home beds section of law, by allowing the Commissioner of Health to approve the addition of new Medicare and Medicaid certified beds using the criteria and process established in this subdivision. Paragraph (b) provides the criteria for determining that an area of the state is a hardship area with regard to access to nursing facility services. Paragraph (c) allows the Commissioner of Health, in cooperation with the Commissioner of Human Services, to publish in the State Register a request for information in which interested parties may demonstrate that a specified area is a hardship area, and the Commissioner shall review responses and comments, and determine if any areas of the state are to be declared hardship area. Paragraph (d) requires the Commissioner to request proposals specifying the number of new beds that may be added in the designated area, and provides restrictions on the number of beds that may be added, and the process for approving or disapproving the proposals. The approval of a proposal expires after 18 months unless the facility has added the new beds using existing space or commenced construction.
Sections 3 and 4 amend the chapter of law related to the review of exceptions to the moratorium. Section 3 modifies the subdivision that allows the Commissioner to review proposals for relocations that are cost neutral with respect to state costs by adding a cross-reference to the new criteria for review under section 4, and adding a cross-reference to the new method for determining budget-neutral nursing facility rates for relocated beds in section 5Section 4 establishes the criteria the review panel must consider in reviewing the application materials and submitted costs by an applicant.
Section 5 amends the chapter of law related to nursing home reimbursement by adding a new subdivision that provides a method for determining budget-neutral nursing facility rates for relocated beds.  This subdivision specifies a formula for calculating the payment rate for beds based on comparing the costs of the beds prior to and after relocation. 
Section 6 repeals the existing criteria for review, which is replaced by the language in section 4, and the subdivision relating to proposals submitted involving nursing home replacement.
Article 2 - Conforming Changes
The modifications in this article are technical conforming changes resulting from the amendments to law in article 1.
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