American Rescue Plan Funds to be Sent to Care Centers to Fund Bonuses

Posted on December 2, 2021 by Jeff Bostic

The Minnesota Department of Human Services (DHS) is developing plans to distribute the $50 million in American Rescue Plan funds to care centers after an announcement from Gov. Walz last week. This funding is to provide recruitment and retention bonuses to staff when staffing shortages are having a significant impact on care centers statewide. The Long-Term Care Imperative is pleased that the Administration has heard our workforce concerns and is taking steps to address that problem.

DHS is planning to send out the funds by mid-December, along with some form of “attestation” that providers will sign indicating that they will use the funds for the intended purpose. It is expected that providers will have 90 days to provide retention and recruitment bonuses to care center staff. It appears that the terms placed on the funding will allow considerable flexibility in how the funds go to employees, including allowing recruitment bonuses to continue to be paid beyond the 90-day period if providers choose to do so. Funds will be distributed based on Medicaid days from the 2020 cost report. While the amount per day is not yet final, it appears likely to be just under $11.

In addition to these emergency funds, the Governor's announcement also included using the state's emergency authority under Minnesota Statute 12A.10 to provide additional assistance to care centers in 2022. DHS is looking into possible ways to design something under that statute, and we are working with the Department to shape policies that can address the severe workforce challenges that care centers continue to face.