Senate Republicans last night passed a $300 million deal to help nursing homes amidst a historic staffing crisis. The agreement included direct grants, facility rate increases, and a workforce incentive fund that adds up to about $1.1 million for every nursing home in the state. These new funds are in addition to the $100 million in loans available in the Human Services bill passed last week.  

“Our nursing homes have been in a crisis, and they’ve been begging legislators for help, only to be ignored up until this point,” said Senator Karin Housley (R-Stillwater). “These are the homes we entrust with our loved ones; these are the workers that ensure our parents and grandparents are comfortable in their final years… And they deserve so much more support than what they’ve been given. With a historic surplus, this should have been one of the first issues addressed this year.”

Nursing Facility Grants totaling $173.5 million will be split into two payments in August 2023 and August 2024. Each nursing home will receive at least $225,000, plus additional funds based on active beds for every nursing home in the state, an average 50-bed facility could see $465,000 in grant funding. The grants can be used for various fiscal management strategies to improve the financial health of nursing homes. Unlike loans in the Human Service budget, these grants will not need to be repaid, making their impact much more meaningful for nursing homes.  

Staffing concerns continue to be a major challenge for nursing homes. $51.5 million in state money in additional to federal funds will enable a temporary $12.32 daily rate add-on for 18 months. Nursing home administrators say that this could translate into a pay raise of about $1 per hour for nursing home staff. The remaining funds from the $300 million are put into a Workforce Incentive Fund (WIF) that facilities can use for hiring and retention bonuses, employee-owned benefits, and employee contributions to a 401k, along with professional development, childcare, meals, transportation, and housing needs of employees. The WIF caps out at $3000 per worker, per year and is available until funds are spent or July 2029.  

According to Long-Term Care Imperative, a collaboration of aging services providers, 15% of nursing homes statewide have completely exhausted their financial reserves and 10% are considering closing. In Greater Minnesota, 17% have no financial reserve and 12% are considering closures. With about 350 nursing homes in the state, that puts 60 nursing homes without reserves, and 41 considering closure. 

“Despite Democrats’ unwillingness to address this critical issue, Senate Republicans never gave up. And as a result, nursing homes are going to see the aid they’ve so desperately been asking for. We were committed to seeing this through, because it was the right thing to do,” Housley said.