Moratorium Exceptions Process Opens; LeadingAge MN Hosts Webinar Aug. 9

Posted on July 24, 2018 by Jeff Bostic

The Minnesota Department of Health (MDH) recently released the application materials for this year’s round of the nursing facility moratorium exceptions process. Care centers interested in applying will need to complete and submit the required application materials by Dec. 20. To help members evaluate whether they should apply, LeadingAge Minnesota is hosting a Moratorium Exceptions webinar on Thursday, Aug. 9. 

There is approximately $964,829 in state funding available for moratorium exceptions projects in this round. That amount is the remaining unused balance after previous rounds as there was no new appropriation made this year. Although it may not sound like that much, the amount of state funding will allow substantial investment in Minnesota care centers. The available state funding, which is applied only to the first-year state cost of approved projects, may cover more than $100 million in much needed construction on care centers throughout Minnesota. 

Under the nursing facility property rate system, a moratorium exception is needed to receive a rate increase for the portion of any care center construction project that exceeds the upper threshold of $1,580,945 in total cost. Projects that are less than the upper threshold can receive a rate increase without approval through the exceptions process, so members will want to look at the cost of their project, and whether it can be accomplished as one or more projects that are less than the upper threshold, before undergoing the time and expense of applying for a moratorium exception through the competitive process. 

Following a review process early next year, MDH expects to have a list of approved projects by April 4, 2019. 

Considerable uncertainty about the future of the property payment system for nursing facilities appears to have held down the number of applications for rate exceptions in recent years.  After reviewing data from appraisals that were authorized by the 2015 legislation that updated the operating payment system, the Minnesota Department of Human Services (DHS) last year released a report to the Legislature on possible changes to the property system. 

The Long-Term Care Imperative plans to review that information and evaluate the strengths and weaknesses of the current system and bring forward proposed legislative changes to property payment in 2019.  In the meantime, members are encouraged to apply for the moratorium funds, which the Long-Term Care Imperative will advocate should continue to be applied to rates to cover approved projects under whatever system is adopted in the future. 

Register Today for Moratorium Exception Webinar – Aug. 9

To help members evaluate whether they should apply for a moratorium exception and give them an understanding of the various options for implementing property projects and the potential rate impacts of those options, LeadingAge Minnesota is hosting webinar on Thursday, Aug. 9 from 1:30 p.m. – 2:30 p.m.  The webinar will be led by Greg TaBelle, Reimbursement Director at CliftonLarsonAllen, who has years of experience with property payment at DHS in addition to his work in recent years with providers.  Registration details will be released soon but those who are interested should mark their calendars now and plan on it.