Moratorium Exceptions Proposals Announced

Posted on August 4, 2021 by Jeff Bostic

Minnesota Department of Health (MDH) recently released a list of moratorium exception project proposals submitted in the current round of that process. Thirteen providers submitted proposals, and the total one-year state Medicaid cost of those proposals is roughly $2.7 million. The current round is funded using less than one million in state funding due to previously canceled projects, so, unfortunately, less than half of the proposals can be approved.

Following a presentation to a review committee later this month, MDH will have a list of approved projects by Sept. 3. Under the nursing facility property rate system, a moratorium exception approval allows the provider to have their entire property rate calculated based on a rental value formula adopted by the 2019 Legislature. That formula is more straightforward and tends to produce a better rate than the old system, which explains why so many proposals were submitted this time.

The Long-Term Care Imperative is pleased that the Legislature recognized the need for dependable and adequate funding for the moratorium exceptions process due to the extensive need to update and improve care center buildings. The recently approved Health and Human Services budget bill provides $4 million in funding per biennium to support ongoing investments. Because the demand significantly exceeding the funding in the current round, we are hopeful that MDH will make that funding available in another round later this year or early next year at the latest.