July 24, 2025

MDH Posts Moratorium Exceptions Process Application

On July 24, 2025 by Jeff Bostic

The application materials for another round of the nursing facility moratorium exceptions process were recently posted on the MDH website. Nursing homes interested in applying for approval to fund a construction project will need to complete all the required application materials and return them to MDH by December 18, 2025.

We are pleased that the Legislature approved ongoing funding for the moratorium exceptions program in 2021, which means that the current round will be able to distribute roughly $8.1 million in state Medicaid funds. Due to the way the state budgets for the program, only the first year of state cost is applied against that amount, so the available funding will support many projects if there are a high volume of applications. This is a great opportunity for those nursing homes looking to significantly upgrade their building.

Timeline

Following a presentation to a review committee shortly after the application deadline, MDH will have a list of approved projects by March 31, 2026. 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 simpler and tends to produce a better rate than the old system, so the moratorium exceptions process is a key tool for upgrading and replacing nursing homes across the state.