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S.F. No. 626 - Modifying Nursing Facility Provisions (The Conference Committee Report)
 
Author: Senator Julie A. Rosen
 
Prepared By:
 
Date: May 10, 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 or other event threatening nursing home residents’ health and safety. Also prohibits property payment rate adjustments for nursing homes placing beds in, or removing them from, layaway status.
 
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; the commissioner shall review responses and comments, and determine if any areas of the state are to be declared a 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.
 
Section 3 allows the commissioner to approve a request for consolidation of nursing facilities; requires the Commissioner of Human Services to calculate a property payment rate adjustment, based on the net cost savings to the state. 
 
Paragraph (b) outlines the process for the commissioner to calculate the net cost savings to the state.
 
Paragraph (c) specifies how the estimated MA resident days of the remaining facility is calculated.
 
Paragraph (d) specifies how the average occupancy percentages are to be reported.
 
Paragraph (e) specifies the requirements consolidating nursing facilities must meet to receive a property payment rate adjustment.
 
Sections 4 and 5 amend the chapter of law related to the review of exceptions to the moratorium. Section 4 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 7Section 5 establishes the criteria the review panel must consider in reviewing the application materials and submitted costs by an applicant.
 
Section 6 modifies the property rate for a nursing facility in Bloomington, effective November 1, 2010.
 
Section 7 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 8 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.
 
Section 9 makes Article 1 effective the day following final enactment.
 
Article 2 - Conforming Changes
 
Sections 1 through 3 make technical conforming changes resulting from the provisions to law in Article 1.
 
Section 4 makes Article 2 effective the day following final enactment.
 
DL/rdr
 

 

 
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