crisis in long term care
TRANSCRIPT
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Minnesotas Seniors Public Policy Issues
Toby Pearson, Vice President of Advocacy, Care Providers of Minnesota
Heidi Holste, Director of Government Affairs, Care Providers of Minnesota
Kari Thurlow, Vice President of Advocacy, Aging Services of Minnesota
Crisis in Long Term Care
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WHO WE ARE
The Long-Term Care Imperative is a collaboration ofAging Services of
Minnesota and Care Providers of Minnesota, two of the states 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.
http://www.careproviders.org/http://www.careproviders.org/http://www.careproviders.org/http://www.careproviders.org/ -
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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
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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
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The Payment Gap
Information and data on Shortfalls in Medicaid funding based on Report Prepared by ELJAY, LLC FOR THE AMERICANHEALTH 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.
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Nursing Facility RebasingUnallottments, Suspensions, and Repeal (State Savings)
Source: Long Term Care Imperative 2013
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% of Nursing Facilities at Risk of Closure(Operating Margins of -5% or Worse)
Legend
=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 inMN are facing a
financial crisis, placing
more than 12,000 jobs
at risk.
LTC Imperative 2011 Nursing Facility Financial Survey Prepared by CliftonLarsonAllen LLP
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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
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The Worker Gap
Source: Long Term Care Imperative 2013 Legislative Survey
Estimated Number of Selected Vacant FTE Positions in Minnesotas
Nursing Homes
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The Worker Gap
Source: Long Term Care Imperative 2013 Legislative Survey
Vacant FTE Positions as a Percent of Budgeted Positions in Minnesotas
Nursing Homes
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Losing Workers
Source: DHS Nursing Home Cost Reports (2011)
Employee Retention Percentage Declined in Care Centers
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Staff Turnover
Source: American Health Care Association, LTC Trend Tracker
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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
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Rate Changes
Assisted Living (Elderly WaiverCustomized 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
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2013 Legislative Proposal
Employees 3% rate increases for nursing
facilities and EW is targeted to
cover increases in
compensation and otheroperating costs, including
wages, benefits, recruitment
and new staff costs.
1% of these increases is to
address workforce needssuch 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