DHS Puts Out Guidance on Care Center Staff Bonuses

Posted on December 16, 2021 by Jeff Bostic

$50 million in American Rescue Plan funding will be sent to care centers soon to provide retention and recruitment bonuses for employees. Although the initial announcement indicated the money would arrive in December, the Minnesota Department of Human Services (DHS) plans to send the funding out on the Jan. 4 remittance advice due to red tape within the agency. Each care center will receive $10.97 times their number of Medicaid resident days on the 2020 cost report.

The requirements on the use of the funds indicate that bonuses starting today and continuing through 90 days after receipt of the funds are eligible costs under this program. Recruitment bonuses can be scheduled to be paid out after the end of the 90 days and still be eligible costs. All employees who work on-site at a care center are eligible. However, the requirements restrict bonuses to just vaccinated employees or those who meet the facility's requirements for an exemption.

Ninety percent of the funds received must be used for employee bonuses that meet the program's requirements, and providers will report how they used those funds at the end of the 90 days. The remaining funds are unrestricted and can be used to address other areas of need beyond staff bonuses.

The $250 million in hero pay funding appropriated during the last legislative session has not been distributed due to political disagreements. However, we are still hopeful that lawmakers will provide hero pay bonuses in addition to these funds. Distributing those funds to a broader group of long-term care providers would be particularly helpful to assisted living providers who are excluded from the bonus grant program.