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DHS outlines nursing facility payment shift to PDPM and proposes wage-floor increases
Summary
DHS told the committee it must transition nursing facility reimbursement from the RUG system to the federal PDPM model, and proposed limits to value-based payment inflation adjustments alongside funding to implement wage floors and workforce standards in nursing homes.
Assistant Commissioner Natasha Mears and DHS budget staff told lawmakers the federal government is moving nursing facility reimbursement away from the RUG (resource utilization group) model toward the PDPM (patient-driven payment model), and Minnesota must transition to maintain federal compliance and funding.
Mears said the governor's package includes funding to implement PDPM and also proposes…
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