North Shore Health (NSH) recently learned that Minnesota Governor Tim Walz’s 2020 budget proposal includes cuts to Value-Based Reimbursement (VBR) for nursing homes.
If enacted as the budget currently stands, it would negatively affect all of Minnesota’s care centers.
“Based upon our analysis, the proposed budget will have a minimum $225,000 cut in reimbursement to North Shore Health in 2020 and these cuts will likely continue for multiple years as new limits are implemented,” said NSH Administrator Kimber Wraalstad.
North Shore Health recently underwent a $24.5 million renovation and build-out. The facility operates a 37-resident skilled nursing care center, a 16-bed critical access hospital, a home health agency and an ambulance service.
The hospital board sent a letter to the governor on March 26, outlining their concerns about the bill. It was pointed out that in 2018 NSH paid over $9,300,000 in direct salaries and benefits, which was over 50 percent of the total operating expenses.
Also stated in the letter, “We just completed a renovation project creating private rooms and bathrooms for each of our residents. We are currently a five star facility on the CMS rating system, with top scores in quality measures, staffing and RN staffing. We provide excellent care and quality of life to the 37 residents who call North Shore Health home.”
VBR was passed as a bipartisan bill in 2015. It promotes quality care providing fair wages and benefits and ensures access to care for seniors. “VBR offers a payment model that allows for competitive wages, benefits and training so we can continue to provide access to quality care, services and support to our residents,” stated the letter sent to the governor. “Your proposed cuts in funding will only exacerbate our challenges in recruiting and retaining our dedicated caregivers.”
When asked if potential cuts to the VBR could impact the levy, Wraalstad responded, “This is of great concern to us and yes, it has the potential to impact the levy. I have met with both Senator Bakk and Representative Ecklund about my concerns and the impact this budget proposal would have to our facility. They were both very gracious with their time and listened to my concerns.
“I believe they are both now aware and will discuss this as the budget is being refined. In addition, LeadingAge Minnesota is very aware of this issue and involved with legislators from throughout the state, the Minnesota Department of Human Services and the Governor’s Office,” said Wraalstad.
Anyone who has any thoughts or feelings about the governor’s proposal as it concerns cuts to the VBR program and relates to the NSH (or any care center in the state) can write to him at: Office of Governor Tim Waltz & Lt. Governor Peggy Flanagan, 130 State Capitol, 75 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, Minnesota, 55155.
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