MDH Announces Moratorium Project Approvals

Posted on April 21, 2020 by Jeff Bostic

The Minnesota Department of Health (MDH) last week announced seven nursing homes have been approved for moratorium exceptions construction projects in the latest round of available funding. Ten of the eleven submissions, and six of the seven selected, were LeadingAge Minnesota members so we are excited to see their interest in improving the environment for the people they serve.  

About $1.2 million in state funds was available for projects this year and the seven projects chosen use almost all of it. Because of 2019 legislation advanced by the Long-Term Care Imperative, the funding formula for these projects is dramatically different than in the past. Improvements in the pay back led to significantly increased interest in the program. 

Because the state budgets for this program based on the one year state Medical Assistance cost of the projects, the actual construction cost supported by the funding is much greater. The seven approved projects are worth more than $90 million in total construction value.

With the moratorium exceptions fund now depleted, another round in 2020 is only possible if additional funds are appropriated by the Legislature. Funding for the exceptions process is one our priorities this year as the need for updated facilities remains significant. Whether the Legislature will be willing to act while focused on COVID-19 is a major question.