Minnesota’s Seniors Public Policy Issues

Toby Pearson, Vice President of Advocacy, Care Providers of MinnesotaHeidi Holste, Director of Government Affairs, Care Providers of Minnesota

Kari Thurlow, Vice President of Advocacy, Aging Services of Minnesota

Crisis in Long Term Care

WHO WE ARE

The Long-Term Care Imperative is a collaboration of Aging Services of Minnesota and Care Providers of Minnesota, two of the state’s largest long-term care associations.

The Long-Term Care Imperative is committed to advancing a shared vision and future for older adult housing, health care and supportive services.

Supporting the Economy

Economic Impact of Long Term Care Facilities for Minnesota Prepared by the Lewin Group for AHCA-NCAL

LTC Supports $6.7 billion in Economic Activity

Powering the Workforce

Economic Impact of Long Term Care Facilities for Minnesota Prepared by the Lewin Group for AHCA-NCAL.

LTC Contribute to Approximately 112,600 Jobs

The Payment Gap

Information and data on Shortfalls in Medicaid funding based on Report Prepared by ELJAY, LLC FOR THE AMERICAN HEALTH CARE ASSOCIATION

Projected 2012 Nursing Facility Shortfall Between Medicaid Reimbursement and Allowable Medicaid Costs (Per Patient Day)

Minnesota vs. North Dakota

The annual cost of eliminating the shortfall to the State would be $78.5 million.

Nursing Facility Rebasing Unallottments, Suspensions, and Repeal (State Savings)

Source: Long Term Care Imperative 2013

% of Nursing Facilities at Risk of Closure(Operating Margins of -5% or Worse)

Legend=<15%

=15%-25%=25%-35%=>25%

East Central 29.4%

Metro 8.2%

Northeast 45.0%

Northwest 21.1%

Southeast 32.7%Southwest 23.7%

West Central 20.8%

Approximately 85 Nursing Facilities in MN are facing a financial crisis, placing more than 12,000 jobs at risk.

LTC Imperative 2011 Nursing Facility Financial Survey Prepared by CliftonLarsonAllen LLP

The Wage Gap

Sources: 2011 LTC Imperative Salary Survey and 2011 MN Health Care Cost Information Service Hospital Salary Data

Gap=$2.07 per hour or $4,306 per year

Gap=$5.79 per hour or $12,043 per year

Gap=$17.39 per hour or $36,171 per year

Gap=$15.77 per hour or $32,802 per year

Gap=$1.81 per hour or $3,765 per year

Gap=$6.13 per hour or $12,750 per year

Senior Living Workers Underpaid in the Marketplace

The Worker Gap

Source: Long Term Care Imperative 2013 Legislative Survey

Estimated Number of Selected Vacant FTE Positions in Minnesota’s Nursing Homes

The Worker Gap

Source: Long Term Care Imperative 2013 Legislative Survey

Vacant FTE Positions as a Percent of Budgeted Positions in Minnesota’s Nursing Homes

Losing Workers

Source: DHS Nursing Home Cost Reports (2011)

Employee Retention Percentage Declined in Care Centers

Staff Turnover

Source: American Health Care Association, LTC Trend Tracker

Nursing Home Costs Without the Elderly Waiver Program

Decrease due to increased

Federal Match

Source: DHS Spending Forecast November 2010

Elderly Waiver Program Saved State Up To $275 Million in 2010

Rate Changes

Assisted Living (Elderly Waiver Customized Living)

Nursing Facility

Source: LTC Imperative 2012

Nursing Facility and Elderly Waiver/Customized Living

• No base increase in last four years• In 2011, 70 low rate homes received increases of up to 2.45%• In 2012, 7 homes were designated “critical access” and received rate increases

2013 Legislative Proposal

Employees• 3% rate increases for nursing

facilities and EW is targeted to cover increases in compensation and other operating costs, including wages, benefits, recruitment and new staff costs. – 1% of these increases is to

address workforce needs such as staff training and retention.

Quality

• 2% rate increases for both nursing facilities and EW providers to develop new quality improvement efforts. – Nursing facility increase to

focus on Advancing Excellence– EW is targets toward

implementing a new quality improvement program.

Nursing Facility and Elderly Waiver Rate Increases