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Nursing home providers say proposed caps, unfunded mandates would deepen staffing crisis
Summary
Representatives of Minnesota nursing homes and long-term care providers told the Human Services Committee that the governor's proposed 2% cap on operating rates and unfunded Workforce Standards Board mandates would create large funding gaps and risk closures, particularly in rural areas.
Nursing home and long-term care providers told the Minnesota Senate Human Services Committee that the governor’s budget proposal — which limits future operating rate growth and does not fully fund Workforce Standards Board mandates — would deepen workforce shortages and threaten facility closures.
Why it matters: Providers said the state’s value-based reimbursement (VBR) model improved wages and benefits over the past decade, and they argued that the proposed changes would reverse gains and create a multi-hundred-million-dollar gap in facility finances.
Provider testimony cited several…
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