crisis in long term care

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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